The government is promising to keep spending as and when
required to get New Zealand through a recession that's now almost
certain.
Photo: RNZ / Jane Patterson
Yesterday Finance Minister Grant Robertson announced a $12.1 billion economic package to support businesses and workers during the Covid-19 crisis.
But Robertson said not every business and job would be saved and he wasn't sugar-coating anything.
"We are going to see many New Zealanders lose their jobs and some businesses will fail. We will have an extended period of deficits and our debt as a country will have to substantially increase.
"Our package announced today and the support that will continue to come will do our best to cushion that blow," he said.
The government's rollout includes wage subsidies, sick leave support, and an across-the-board boost in benefits.
This is just the initial response though and Robertson said the support will continue in what will be turbulent times ahead.
"We will fight the virus. We will cushion the blow for businesses and workers. We will position for recovery. We have been and we will be swift and decisive and compassionate.''
But while a time of crisis and tragedy usually brings Parliament together - like gun reforms in the immediate aftermath of 15 March - for National's Simon Bridges yesterday was an opportunity to take pot shots.
"Bluntly, what we see in this package today is money flowing faster into the hands of beneficiaries than the workers and the businesses that will lose their businesses and their jobs over coming weeks and months,'' he said.
"You know, that to me is a crying tragedy."
Green Party co-leader James Shaw Photo: RNZ / Dom Thomas
However, Green Party co-leader James Shaw offered this critique.
"I thought that he was tone-deaf.''
But Bridges said the public will see his opposition as constructive criticism.
Yesterday's announcement sees $5.1 billion directly towards wage subsidies for affected businesses across the country - effective immediately.
There will be a cap of $150,000 per business for those who can show they've had a 30 percent decline in revenue in any one month in the first half of this year.
But Bridges said if he was running the show he'd be sinking a lot more money in than that.
"I'd potentially do much more, I might not have a limit. That said I don't have costings, I don't have Treasury at my disposal, I haven't worked those things out.
"But it demonstrates the confused priorities. We've got money here for beneficiaries and Winter Energy Payment, but not the money to keep those businesses in business and workers in jobs,'' he said.
Beneficiaries will also get an immediate and permanent increase of $25 a week in the hand, and the Winter Energy Payment, which beneficiaries and superannuants receive, will be doubled this year.
Act leader David Seymour supported benefit increases but not long-term.
"Look, I think what they've done with benefits is right for the crisis but wrong on a permanent basis.
"Nobody should be using this crisis as an excuse to get through their policy agenda,'' he said.
Seymour would also like to see politicians take a 20 percent hit in their back pocket and for public sector chief executives to be encouraged to do the same.
The Green Party agreed.
Deputy Prime Minister Winston Peters didn't attend yesterday's announcement and was more an observer during a press conference with the prime minister.
But it was in the House that he launched his attack.
Finance Minister Grant Robertson announcing the economic package to fight Covid-19. Photo: RNZ/Dom Thomas
"But I want to refer to the speech we heard from the leader of the
opposition - frankly, I do have to because it was shallow and it was
graceless and the New Zealand people will judge him for it.''
He wasn't alone with Jacinda Ardern joining in too.
"There are moments in our history where it's not business as usual. Where New Zealanders expect us to come together. Where we need unity - not politics as usual.
"And today Mr Bridges is one of those days,'' she said.
But with Treasury forecasting this crisis to cause a bigger downturn than the global financial crisis - it's still rough seas ahead for all New Zealanders.
Photo: RNZ / Jane Patterson
But Robertson said not every business and job would be saved and he wasn't sugar-coating anything.
"We are going to see many New Zealanders lose their jobs and some businesses will fail. We will have an extended period of deficits and our debt as a country will have to substantially increase.
"Our package announced today and the support that will continue to come will do our best to cushion that blow," he said.
The government's rollout includes wage subsidies, sick leave support, and an across-the-board boost in benefits.
This is just the initial response though and Robertson said the support will continue in what will be turbulent times ahead.
"We will fight the virus. We will cushion the blow for businesses and workers. We will position for recovery. We have been and we will be swift and decisive and compassionate.''
But while a time of crisis and tragedy usually brings Parliament together - like gun reforms in the immediate aftermath of 15 March - for National's Simon Bridges yesterday was an opportunity to take pot shots.
"Bluntly, what we see in this package today is money flowing faster into the hands of beneficiaries than the workers and the businesses that will lose their businesses and their jobs over coming weeks and months,'' he said.
"You know, that to me is a crying tragedy."
Green Party co-leader James Shaw Photo: RNZ / Dom Thomas
"I thought that he was tone-deaf.''
But Bridges said the public will see his opposition as constructive criticism.
Yesterday's announcement sees $5.1 billion directly towards wage subsidies for affected businesses across the country - effective immediately.
There will be a cap of $150,000 per business for those who can show they've had a 30 percent decline in revenue in any one month in the first half of this year.
But Bridges said if he was running the show he'd be sinking a lot more money in than that.
"I'd potentially do much more, I might not have a limit. That said I don't have costings, I don't have Treasury at my disposal, I haven't worked those things out.
"But it demonstrates the confused priorities. We've got money here for beneficiaries and Winter Energy Payment, but not the money to keep those businesses in business and workers in jobs,'' he said.
Beneficiaries will also get an immediate and permanent increase of $25 a week in the hand, and the Winter Energy Payment, which beneficiaries and superannuants receive, will be doubled this year.
Act leader David Seymour supported benefit increases but not long-term.
"Look, I think what they've done with benefits is right for the crisis but wrong on a permanent basis.
"Nobody should be using this crisis as an excuse to get through their policy agenda,'' he said.
Seymour would also like to see politicians take a 20 percent hit in their back pocket and for public sector chief executives to be encouraged to do the same.
The Green Party agreed.
Deputy Prime Minister Winston Peters didn't attend yesterday's announcement and was more an observer during a press conference with the prime minister.
But it was in the House that he launched his attack.
Finance Minister Grant Robertson announcing the economic package to fight Covid-19. Photo: RNZ/Dom Thomas
He wasn't alone with Jacinda Ardern joining in too.
"There are moments in our history where it's not business as usual. Where New Zealanders expect us to come together. Where we need unity - not politics as usual.
"And today Mr Bridges is one of those days,'' she said.
But with Treasury forecasting this crisis to cause a bigger downturn than the global financial crisis - it's still rough seas ahead for all New Zealanders.
Post a Comment