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Key’s pre-budget falls flat

Written By: - Date published: 8:29 am, April 15th, 2015 - 8 comments
Categories: budget 2015, john key, national - Tags: , , , ,

Key’s attempts to drum up enthusiasm for this year’s upcoming budget have fallen absolutely flat. Brian Fallow says “Govt boost to R&D not enough to close gap on OECD“. Even John Armstrong can’t get excited:

John Key’s make-or-break Budget

Ouch!

Following National’s heavy defeat in the Northland byelection, the address to a Business New Zealand audience was Key’s strongest pitch yet to regain control of the political agenda.

The speech sought to eradicate any perception that when it comes to fresh thinking and new ideas, his Government is in deficit. Unfortunately for Key, the two Budget-related announcements contained in the speech risked giving every impression that National is running on empty.

National has been running on empty for a long time now. Which is a good thing, since their policies are generally damaging.

The first announcement was an $80 million boost in funding over four years for research and development; the second was the promise of $244 million over four years for building new schools and additional classrooms for existing ones.

In the first case, given New Zealand’s woeful spending on research and development, it is foolhardy to crow about an injection of funds which fails to compensate for earlier cuts.

As for new schools, National is trying to make a virtue out of a necessity. Population pressures drive the building of new schools. Governments have to provide. It is not a matter of choice.

Yup. Furthermore, as usual, the promised research funding actually represents an ongoing cut in real terms. Why doesn’t the media ever pick up on this? Why is it left to Russel Norman?

Back to Armstrong:

Such cynicism on National’s part will be grist to the mill for the party’s opponents trying to paint National as an administration which is drifting, lacking direction and becoming increasingly arrogant and out of touch. That is not the case (yet). But there are signs in the behaviour of one or two ministers that the rot has set in.

Dear sweet John, it is certainly the case that National is “an administration which is drifting, lacking direction and becoming increasingly arrogant and out of touch” and it has been for a long, long time. Your Emperor has no clothes.

8 comments on “Key’s pre-budget falls flat ”

  1. Kiwiri - Raided of the Last Shark 1

    John Key will nail it. Yeah right!

  2. Enough is Enough 2

    Every budget of John Key’s has fallen flat. Name one which has been greeted with cheers and excitement from the public.

    This is really just more of the same.

  3. coaster 3

    why do goverments put in 4 year plans for next years budget?. 80 million for rand d is 20 million a year in simple terms right, or are they putting 80mill into a pot that can be given out over the next 4 years?, in which case they arnt realy spending 80 mill next year. what happens after the 4 years, does r and d come back to its current level, if that is the case what makes the next 4 years so special that it nedds extra funding??

    • Kiwiri - Raided of the Last Shark 3.1

      The budget has become, at best, (one of National’s favourite words) aspirational, and in reality more of a game of ‘extend and pretend’.

  4. tracey 4

    Did National cut R and D when they first came back into Government? At a time when it needs to stay in place, a recession

    “Party leader John Key revealed a slightly pared down tax cut package that puts more in people’s pocket’s next April, but offers less than planned.

    The cuts are funded by cutting planned increases to Government subsidies for those in KiwiSaver and axing research and development tax credits for businesses.

    There is also a reduction in the amount to be spent on infrastructure in the next three years, so that borrowing is reduced.” 8 October 2008 NZHerald

    interestingly, given that forecasts by Treasury are like “landing a 747 on a pin head” you wonder why Key believed them backin 2008 and made life harder for lower income folks but better for the high income?

    “Mr Key said National had scaled back its tax cuts plan by $2 billion in the face of a decade of forecast budget deficits.

    Lower income earners who get Working for Families, lower income KiwiSavers and companies receiving research and development tax credits are the main losers under the package. ” same article

  5. dukeofurl 5

    Other stories say the High School in Hamilton is under way and was previously announced last year http://www.stuff.co.nz/waikato-times/news/10444704/New-high-school-plans-out-for-
    tender

    Make that announced TWICE last year

    http://www.stuff.co.nz/waikato-times/news/9826547/New-schools-for-Hamilton

    Recycled press releases ? There seems to be a mutiny in the press gallery as they are expected to polish these turds.

    next thing the gallery will be clamouring for the return of jason Ede ?

    No sign of Jas at his new job at Teamtalk
    http://www.teamtalk.co.nz/about-teamtalk/management-team

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