Crown account figures released today show we already have a deficit of $13 billion and net debt has already increased by nearly $20 billion on pre-Covid levels, National’s Finance spokesperson Paul Goldsmith says.

“Debt-fuelled Government spending on an industrial scale on its own is not an economic plan. But that appears to be the Government’s strategy while we wait for a vaccine. 

“While some increased spending during this crisis is to be expected, we can’t lose sight of basic disciplines around the quality of spending and a focus on results.

“Because the debt eventually has to be paid back, before the next crisis.

“As a percentage of GDP, net debt has increased to around the level it peaked following the Global Financial Crisis – at just over 25 per cent. This is just the start.   

“Today we see the Government’s $87 million scheme to provide IT equipment to children during lockdown has been labelled a disaster by principals and a waste of money. None of the many budget and post-budget spending announcements, such as $1.1 billion for possum trapping and other make-work schemes, have been through proper Treasury scrutiny for effectiveness.

“Other examples of low value for money spending that should be reprioritised include Fees Free and KiwiBuild. Cancelling those policies alone would save taxpayers over $2 billion over the forecast period.

“Businesses are under real pressure to stay afloat and keep people in work. They need a Government who creates policies to help them stand on their own two feet.

“Private sector investment will be the key driver of growth. 

“National has also proposed our $10,000 JobStart scheme for businesses that hire additional staff, as part of our commitment to keeping New Zealanders in jobs.“Our focus would be opening up the economy, keeping taxes low, reducing the regulatory burden that slows down investment and not excessively restrict direct foreign investment that creates jobs.”