Labour quietly promises billions more in spending
In a speech last week, Labour’s Foreign Affairs Spokesperson has committed to an additional $6.5 billion in spending by promising to increase New Zealand’s foreign aid to 0.7 per cent of Gross National Income, says Simeon Brown.
“This is one of the largest spending commitments made by Labour this election and, incredibly, it was made with zero explanation of how much it would cost and how it would be paid for.
“If Labour was to fulfil this commitment from 2027/28, aid spending would almost triple in one year, to $3.4 billion.
“If it was phased in evenly, reaching 0.7% in 2030/31, the extra cost is about $6.5 billion over four years – roughly a billion dollars more than what it cost to build the City Rail Link.
“This new multi-billion dollar commitment is on top of Labour’s $18.8 billion hidden bill, which will cost the average Kiwi household $2,263 in extra tax, every year.
“Chris Hipkins promised earlier this week that he would not borrow more than National and says his Capital Gains Tax peaks at $1.3 billion in annual revenue. So where is the rest of the money coming from?
“Luckily for him, his coalition partners in the Greens, TOP and Te Pati Māori have laid out a smorgasbord of new taxes to choose from.
“The choice at this election is clear, between National with a plan to keep growing the economy, spending sensibly and paying down debt, with no new taxes. Or a Labour coalition that would impose nine new taxes on Kiwis to send billions more offshore.”
