Election 2020: a ‘sugary’ tax cut or a ‘waste’ of public spending: the finance debate

New Zealand’s next finance minister will offer a “sugary” tax cut or “waste” -based infrastructure spending.

The two men competing for the job discussed their competitive visions for the country’s economy Monday night. Stuff Debate on finances.

Labor’s Grant Robertson cajoled National’s Paul Goldsmith about his plan for unemployed Maori and a $ 4 billion hole in his budget.

Goldsmith raised the specter of Labor escaping public spending, adding taxes to people’s pay packages and stifling job creation.

READ MORE:
* Election 2020: Grant Robertson and Paul Goldsmith head to the Finance of Things Debate with everything to play for
* 2020 Election: Judith Collins Continues With Estate Tax Attack, Jacinda Ardern Claims ‘Misinformation’
* Live broadcast of the 2020 elections: Grant Robertson and Paul Goldsmith square off in Stuff Finance Debate

Robertson said Labor is willing to partner the state with the private sector and spend heavily on infrastructure.

Goldsmith promised to create an “environment conducive to employment” through the government’s reliance on New Zealanders to spend their money to keep the economy afloat.

The pair were joined by a small crowd of supporters, and Robertson’s supporters were more willing to respond loudly to his blows to Goldsmith.

The first question asked Robertson and Goldsmith, who earned $ 5,700 and $ 3,100 per week respectively, to put themselves in the shoes of someone who lost their job.

“How would you cut your fabric to fit?” Stuff asked political editor Luke Malpass.

Robertson said he was “not pretending it was easy” and that the cost of living has gone up with every government, so the Labor Party had focused on raising the incomes of the poorest, including an increase in benefit levels against the Covid-19 pandemic.

“It would be difficult, there is no doubt. I have a wife and four children, and the cost of living in a modern society is expensive, ”Goldsmith said.

He said National focused on “stopping waste” in public spending and putting more money in people’s pockets through the promise of a 16-month tax cut.

They both said job creation was crucial. Goldsmith said his promised tax cut would stimulate the economy and create jobs. Robertson cited Labor’s intentions to spend on infrastructure as a job creator.

Robertson was happy to cajole Goldsmith about his plan to tackle Maori unemployment, which lacked the specificity of Robertson’s response: funding job plans and a focus on Maori businesses in public procurement.

Maori unemployment has been high, currently at 6.7 percent, or 23,000 people, after spending a decade at more than 7.8 percent.

Goldsmith said the “short-term jobs” created by government procurement were fine, but overall a strong economy was needed for “New Zealanders to hire New Zealanders.”

“So nothing for the Maori unemployment?” Robertson asked Goldsmith.

Robertson, who was asked if he would ever have another budget surplus, said he was confident that the Labor plan would eventually return the country to surplus, but “it is not going to happen right away.”

“It’s never going to happen,” Goldsmith said. National has a path back to surplus, but the party has allowed itself a tight fiscal margin, with just $ 800 million to spend in 2021, prompting ridicule from Robertson.

“If you don’t have Shane Jones in the cabinet, we are going to have a huge amount of money,” Goldsmith replied, referring to the New Zealand Prime Minister who has been in charge of a $ 3 billion Provincial Growth Fund.

Goldsmith said National would reclaim money earmarked from Labor-led government spending promises on policies such as “planting flax bushes and shooting policies.”

Robertson, pressed on the possible cost of the Auckland light rail project, said there was still no answer to the cost of the project, although the government had set aside $ 1.8 billion in seed funding.

Each finance spokesperson had the opportunity to ask the other two questions. Goldsmith asked Robertson if he could seriously say that each of PGF’s projects was good value for money.

Robertson said he had seen the value of that money in Gisborne earlier that day, and criticized Goldsmith for not having a “vision” for the regions.

Robertson told Goldsmith that he intended to spend the $ 14 billion pot the government had set aside for a rainy day, or a Covid-19 resurgence.

“We don’t intend to spend all the money that we have,” Goldsmith said.

In a second round, Robertson asked Goldsmith how much operational allocation there would be for basic health services in his first budget.

“We will invest what we need … We have $ 800 million set aside,” Goldsmith said, though National would wait to see the government books before committing to an amount.

“That’s for everything, not just health,” Robertson said incredulously.

When asked about Labor’s no-cost intention to build a hydraulic pump scheme on Lake Onslow, Robertson said it was a major project and that the party would have $ 8.7 billion for capital expenditures in the next few years.

When questioned by a member of the public about how they could support companies, Goldsmith said that Labor was driving up costs for companies, increasing the minimum wage and sick leave rights, as companies struggled to give workers pay increases. .

Robertson said the Labor Party would expand the “flexible salary scheme,” a subsidy scheme intended to encourage employers to hire people who need training and support. They both had business plans

Goldsmith said his tax cut was superior to Robertson’s infrastructure and retraining spending because National relied on New Zealanders to make decisions to boost the economy.

“He is against backing down against the overwhelming tide of regulation,” Goldsmith said.

Roberston said his plan “recognized the world we live in.” A Labor government would be associated with a sector, as a government that “sits on the sidelines” was not needed.

“This man is so conceited, so conceited,” Goldsmith said.

Robertson said, “Everything Paul is describing to you is hindsight, it’s trickle-down economics.”

Goldsmith took the fight to Robertson, pointing to him while listing several places in New Zealand where jobs were threatened: “You should go to Southland.”

“I’ve been there,” Robertson said to each suggestion.

On the subject of a $ 4 billion fiscal hole in the national budget, revealed by StuffGoldsmith refuted Robertson’s argument that they were misusing a transportation fund to cover the shortfall.

“That’s petty policy,” Goldsmith said of Robertson’s claim about what the money was for.

Robertson said, “That’s not petty politics, it just adds to the numbers.”

National’s attack on Labor this week, a claim that the party would yield to the Green Party at the negotiating table and implement a wealth tax, was brought into the debate by Goldsmith by mentioning Labor’s tax plan.

Issued Robertson Tax Plan – Labor has proposed a new 39 percent tax on income earned above $ 180,000 and no other tax changes – like “vote for us and we’ll make someone else pay more taxes.”

“The problem with that is that a government that can’t control its spending will eventually come for you,” Goldsmith said.

They were both asked a series of quick questions: What is the current exchange rate from NZD to USD? What is the gender pay gap? What was the gender pay gap in New Zealand?

Goldsmith got the coin right, at 67 cents. Neither of them got a question about the gender pay gap, which stands at 9.5 percent.

Housing remained a contentious issue between the two. Goldsmith said Labor must be held accountable for their failure at Kiwibuild.

Robertson, pointing to Goldsmith, said the Labor-led government had built more pubs than National.