Labour-Green ‘budget rules’

Labour and Greens, headed by Jamews Shaw and Grant Robertson, have launched a joint attempt to present themselves as economically responsible.

Liam Dann at NZH has Big Read: Can these politicians be trusted with the economy?

They aren’t revealing tax policy detail or spending plans, so what exactly have Labour and the Green Party cooked up with the Budget Responsibility Rules they’re signing up to today?

The parties have formally committed to staying in surplus, paying down debt and keeping core crown spending at about 30 per cent of GDP.

“It’s an important signal,” says Labour finance spokesman Grant Robertson.

“We understand that voters in September are looking for parties that are responsible with the finances but will also address the big issues around housing and health and education.”

The rules aren’t specific on policy – for example, the statement on tax is pragmatic and vague enough to allow the Greens to keep campaigning on a carbon tax.

But they do represent a statement of intent, one which is politically notable for the way it has been handled, in tandem by the respective party machines.

The message is clear, simple and directed at business and the financially comfortable middle classes who have been stubbornly loyal to National for the past nine years: vote for us and we promise won’t ruin the economy.

As the headline suggests, it is a big and detailed read.

Not addressed is an obvious difference between Labour and the Greens – Andrew Little has made it clear Labour won’t increase tax (but with some caveats) while Greens have a big shopping list.

Greens announced through Facebook:

We’ve created new budget rules with the New Zealand Labour Party to help us build a sustainable and stable future for everyone.

This links to:

Budget Responsibility Rules

The Budget Responsibility Rules will allow us to govern responsibly.

Economic sustainability goes hand in hand with environmental sustainability. Both are about living within our means and leaving the world better than we found it.

Our Budget Responsibility Rules show that the Green Party and the Labour Party will manage the economy responsibly while making the changes people know are needed, like lifting kids out of poverty, cleaning up our rivers, solving the housing crisis, and tackling climate change.

  • Deliver sustainable surpluses
  • Reduce debt
  • Prioritise long-term investments
  • Be careful with expenditure
  • Build a fairer tax system

We will judge the success of our policies by improvements in the living standards of New Zealanders, improvements in key environmental indicators, and improvements in the economy.

We will establish a body independent of Ministers of the Crown who will be responsible for determining if these rules are being met. The body will also have oversight of government economic and fiscal forecasts, shall provide an independent assessment of government forecasts to the public, and will cost policies of opposition parties.

For New Zealanders to have enduring quality of life, prosperity, and security, governments need to manage revenue and spending decisions carefully. Good fiscal management is a core part of what it means to be a good government.

The Budget Responsibility Rules enable us to govern responsibly and transparently with Labour, while we invest in our priorities.

Read the full Budget Responsibility Rules here.