Latest news with #ChloeSwarbrick
RNZ News
25-05-2025
- Business
- RNZ News
Greens claim $700m 'uncosted hole' in Budget
Greens co-leader Chloe Swarbrick says the Budget contains an uncosted hole of anywhere from $633m to $714m over the forecast period. Photo: RNZ / Samuel Rillstone The government could face an unbudgeted hole of hundreds of millions of dollars in increased KiwiSaver contributions for public sector workers, the Green Party says. As part of the Budget last week, the government announced that the default KiwiSaver contribution for employees and employers would lift to 4 percent, in stages. But the Green Party said the government had not accounted for that increase for its own employees in its books, and over the Budget forecast period it could add up to $714 million in costs. Co-leader Chloe Swarbrick said last time the government increased the compulsory employer contribution, it set up a fund to help cover its costs. The increased cost to government as an employer was highlighted in the Budget Economic and Fiscal Update and in the KiwiSaver reforms regulatory impact statement. "What we've found is what we believe to be a hole in the government Budget, an uncosted hole of anywhere from $633m to $714m over the forecast period," Swarbrick said. "The Crown is obviously an employer of thousands and thousands of people with billions and billions of dollars in wage bills. If we're to project from the base line of around 72 percent of the population... at the default rate which is increasing, the Crown will have an increased liability to meet those employer contributions." She said the government either did not spend enough time working it out, or was "intentionally hiding or obscuring what I'm sure the minister will say are going to have to be new cuts that agencies and ministries will be forcing departments to make to account for the increased contributions". Finance Minister Nicola Willis's office said the potential cost had been noted. "Crown agencies as employers will assess the potential implications for agency budgets. If any additional funding is required, it would count against the Budget 2026 operating allowance." But Swarbrick said it was not being sufficiently upfront. She said it seemed the government did not want to be seen to be being "mean" by just halving the member tax credit, to $260 a year, and so had to increase contributions at the same time. It should have happened as part of more consultation and a full review of retirement settings, she said. "This will be an additional cost as soon as the changes come into effect." Employers who offer total remuneration packages to employees will dodge some of the increase but Swarbrick said it was clear that the government would not be able to shift people on to that arrangement to avoid the increase in a way that reduced their take-home pay. Craig Renney, policy director at the NZ Council of Trade Unions, said it was an issue for the government as an employer. "It would be good to know what calculations they have made themselves as to their additional remuneration costs. Is the Crown going to force workers to eat the increase themselves? It would set a very bad example for the rest of the market." He said good employers should see the increase as an opportunity to improve employees' retirement outcomes. "The risk is that for some employers they might view the 'total remuneration' of their employees as a single package. That would mean they would expect any increase in KiwiSaver to come from the same money. That would mean lower real pay increases for employees and less cash in hand. "Given that we have very weak demand in the economy, there are probably limited opportunities for employees to get a different job - especially with unemployment forecast to keep rising. Ultimately, that would mean that the government has set up a system where employees end up paying for increased employers contributions to their own KiwiSaver. "There are some industries where there might be a simple pass-on to the consumer for these costs, but again, in a subdued market these are probably fewer than you might expect. These are probably also higher income earners, so the likelihood is that lower income earners will be more likely to face that 'total remuneration' issue. That will simply compound existing income adequacy problems in New Zealand." Employees will be able to opt to return their contribution to 3 percent, matched by an employer's 3 percent. Renney said there was a risk some people could face pressure to do so. "Again, it is likely to low paid/lower market power employee who face this challenge. Secondly, if we make it easier to become a contractor - where this is not an issue - this move will encourage employers to pretend that their employees are contractors. The current proposed changes by government in that regard might drive more of that behaviour, putting workers at a significant disadvantage." Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday
Otago Daily Times
14-05-2025
- Business
- Otago Daily Times
Greens want to get passenger rail back on track
The Green Party wants to supercharge passenger rail in the South — including reviving the Southerner. The party released its shadow budget yesterday ahead of the government's official Budget announcements. The shadow budget has a strong focus on the environment and curbing emissions, and key to this platform is the restoration of passenger rail across the country. The document notes that "Aotearoa was once linked up by passenger rail — from Christchurch to Dunedin, and to a myriad of small towns in between". "On any given day there were at least two passenger rail services to Christchurch from Dunedin. "Our plan to deliver a passenger rail service between Christchurch and Dunedin assumes leased rail cars from KiwiRail, while a stage one proof of concept is under way and establishment and refurbishment of stations at Rolleston, Timaru, Oamaru and Ashburton." Under the proposal, one train would run each way per day. "Once the passenger service has been proven, we would electrify and upgrade the main line from Christchurch to Ashburton to 110kmh, and purchase tilt trains to run the service and speed up travel times." The Southerner, running between Christchurch and Invercargill via Dunedin, ran successfully from 1970. In 1993, the rail system was sold privately, before being sold back to the government in a significantly degraded condition, and closed in 2002. Green Party co-leader Chloe Swarbrick said New Zealand once had regular, affordable train services connecting the country's centres and regions. "We've done it before, and we can do it again. "A passenger rail link would be great for students studying in Otago and Canterbury, and once the new Dunedin hospital is up and running, there will need to be a comfortable, accessible mode of transport for patients and whānau travelling there from around the region." Rail & Maritime Transport Union general secretary Todd Valster said reviving regional rail had a lot of merit, economically and environmentally. "There are a lot of people, young people nowadays in particular, that don't necessarily own cars and would like public transport options." The Green Party's shadow budget costs the project's operating expenditure at $16.89 million over its first four years, generating revenue of about $14.19m. Upgrading the stations would cost about $20m, buying the new trains about $90m and upgrading the lines about $300m over four years.
Otago Daily Times
14-05-2025
- Business
- Otago Daily Times
Party wants to get passenger rail back on track
The Green Party wants to supercharge passenger rail in the South — including reviving the Southerner. The party released its shadow budget yesterday ahead of the government's official Budget announcements. The shadow budget has a strong focus on the environment and curbing emissions, and key to this platform is the restoration of passenger rail across the country. The document notes that "Aotearoa was once linked up by passenger rail — from Christchurch to Dunedin, and to a myriad of small towns in between". "On any given day there were at least two passenger rail services to Christchurch from Dunedin. "Our plan to deliver a passenger rail service between Christchurch and Dunedin assumes leased rail cars from KiwiRail, while a stage one proof of concept is under way and establishment and refurbishment of stations at Rolleston, Timaru, Oamaru and Ashburton." Under the proposal, one train would run each way per day. "Once the passenger service has been proven, we would electrify and upgrade the main line from Christchurch to Ashburton to 110kmh, and purchase tilt trains to run the service and speed up travel times." The Southerner, running between Christchurch and Invercargill via Dunedin, ran successfully from 1970. In 1993, the rail system was sold privately, before being sold back to the government in a significantly degraded condition, and closed in 2002. Green Party co-leader Chloe Swarbrick said New Zealand once had regular, affordable train services connecting the country's centres and regions. "We've done it before, and we can do it again. "A passenger rail link would be great for students studying in Otago and Canterbury, and once the new Dunedin hospital is up and running, there will need to be a comfortable, accessible mode of transport for patients and whānau travelling there from around the region." Rail & Maritime Transport Union general secretary Todd Valster said reviving regional rail had a lot of merit, economically and environmentally. "There are a lot of people, young people nowadays in particular, that don't necessarily own cars and would like public transport options." The Green Party's shadow budget costs the project's operating expenditure at $16.89 million over its first four years, generating revenue of about $14.19m. Upgrading the stations would cost about $20m, buying the new trains about $90m and upgrading the lines about $300m over four years.
RNZ News
14-05-2025
- Business
- RNZ News
Coalition deride Green budget as 'Marxist' and 'left-wing Trumpism'
Coalition members have slammed the Green Party's alternative budget. Photo: RNZ Coalition members are responding to the Green Party's alternative budget with derision, while Labour distanced itself from the proposal, saying it would set out its own tax policy this year. The prime minister said it is "clown show economics" and an "absolute circus" while the deputy prime minister held up a printed copy of the hammer and sickle symbol to reporters, calling the co-leaders "Chloe Marx and Marama Engels". The Greens have pledged free GP visits and free childcare funded through new taxes and increased borrowing. The policies include a wealth tax, a private jet tax, ending interest deductibility for landlords, restoring the 10-year "bright-line" test, doubling minerals royalties and changes to ACC levies. The plan would see net debt climb from 45 percent of GDP to above 53 percent by the 2028/29 financial year. According to the Greens' calculations, the new revenue streams would fund a free public health service providing GP and nursing services, free annual dental check-ups and basic dental care, as well as restoring free prescriptions. Prime Minister Christopher Luxon slammed the policy and said the Labour-Greens prescription would be to "tax more, borrow more and spend more." Luxon laughed at the idea of a private jet tax, dismissed the budget, and said the "whole thing's madness." "It's just hard to even think about it as economic policy, isn't it? It's just absolute madness and kookiness." He said the New Zealand people did not want more tax, more spending and more borrowing. Echoing the prime minister, Finance Minister Nicola Willis called it a "ticket to the clown-show," and "an absolute circus of an idea." She said it would be a way to "kill all profit, all businesses in New Zealand - absolutely absurd" and Labour needed to rule out the "clown show manifesto". "If they don't, what they're saying to New Zealanders is, we're prepared to trash your economy so that we can grab power." When Willis was told Labour had not ruled anything in or out yet, she said the party was "on the train to the clown show". "If they will not rule it out, they are saying they are prepared to govern like a circus, because that is almost a soviet manifesto in terms of the confiscation of wealth, income and business it promotes." She said it showed how far Labour had departed from "economic common sense." New Zealand First leader Winston Peters brought a printed copy of the Greens' alternative budget through Parliament on his way into the House. "I've got the manifesto by Chloe Marx and Marama Engels," he said, referring to Green co-leaders Chlöe Swarbrick and Marama Davidson. He said the budget was "Marxist" and added a sheet to his printout with the communist hammer and sickle symbol, saying that was "what it's all about - unbelievable". He ruled out forming a coalition with the Green Party. "I'm not wasting my time with the Green Party's pink, Marxist plan." He said the country would be "Venezuela" and "Myanmar tomorrow". ACT leader David Seymour said the document was a "Green-with-envy budget" and also mentioned Venezuela, saying Swarbrick should move there "where they already have the same policies, and 90 percent live in poverty". "This Green budget said your problems are caused by other people's success, and your solution is to take other people's money with more taxes. "That's the opposite of the philosophy that makes any country thrive and offer better lives to its people." In regards to the tax on private jets, Seymour said it was "left-wing Trumpism" and "south Pacific populism." "The idea that this is a serious public policy instead of a marketing slogan with a policy growing out of it, I believe, is fatuous; this is a Green Party that has become populist." Seymour questioned how many private jets there were, and said a tax on them could deter wealthy visitors. Swarbrick said the number had doubled in the past decade, to about 700 a year and defended the $5000 cost per passenger, saying it would not be "that much of a drop in the bucket". Green co-leader Chlöe Swarbrick. Photo: RNZ / Samuel Rillstone "This is about putting a stake in the ground. The average New Zealander, the average person out there across the world right now ... is doing their absolute best to make the right transport choices, to stop using plastic straws, but we need those who can afford to fly private jets around the world to pay their fair share." She was not surprised by Seymour's "Green with envy" characterisation. "This is the same guy who wants to cut taxes for the wealthiest in this country and steal our schoolkids' lunch money." Davidson said they had not yet discussed with Labour which aspects of the Budget could be retained under any potential coalition deal. "We know that it is the people that have the power to choose this plan," she said. "What we are presenting today is showing how we can actually take care of people and our planet, we have got enough to look after our people." Asked about whether it lined up with Labour's ideology, she said it was based on an understanding from "decades of underinvestment into the things that people need, into the things that our environment needs". Labour's leader Chris Hipkins said he had only seen the headlines and his party would set out its own tax policy this year. He has previously spoken about wanting to increase overall debt levels, but said this would depend on what was being spent on. "If you're borrowing money to pay for long-term infrastructure assets that are going to benefit the country in the long term, that's different from borrowing money for day-to-day consumption like more people on an unemployment benefit. "We do need to invest in the fact that our water infrastructure's run down, our roads are run down, our schools and hospitals are run down, we're going to need to invest in those things. "Doing those in a way that actually means more people have jobs, fewer people are claiming unemployment benefits, that's going to be better for the economy than the course the current government are taking." Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
13-05-2025
- Business
- Otago Daily Times
Greens promise free doctor visits, childcare on back of new taxes, higher borrowing
Green Party co-leaders Marama Davidson and Chloe Swarbrick. Photo: RNZ The Green Party has laid out its alternative Budget, pledging free GP visits and free childcare funded through new taxes and increased borrowing. It comes just over a week before the coalition government reveals its spending plans in Budget 2025. On Wednesday, the Greens released a suite of proposed policies and taxes - some new, some previously campaigned on. They include a wealth tax, a private jet tax, ending interest deductibility for landlords, restoring the 10 year 'bright-line' test, doubling minerals royalties and changes to ACC levies. The plan would see net debt climb from 45 percent of GDP to above 53 percent by the 2028/29 financial year. According to the Greens' calculations, the new revenue streams would fund a free public health service providing GP and nursing services, free annual dental check-ups and basic dental care, as well as the restoring free prescriptions. On the childcare front, it would give 20 hours' free care per week for children from six months until school age, and cap fees at $10 per day for hours above the 20 per week entitlement in the short term, transitioning over time to free provision. The alertnative Budget also includes an "Income Guarantee" which would ensure anyone out of work or studying has an income of at least $395 a week, plus top-ups of $140 a week for sole parents. Green Party co-leader Chlöe Swarbrick said the alternative budget showed how people's lives would be better under a government run by them. "This is a budget for a country that belongs to and works for New Zealanders." Swarbrick said the party believed in fairness and common sense. "A Green government will rapidly reduce emissions, reduce the cost of living and improve our quality of life." She said her policies could be funded by taxing New Zealand's wealthiest people fairly. The party also planned to reinstate the jobs for nature programme which was set up during the Covid-19 pandemic and is set to end next month. It would also require farming to be included in the emissions trading scheme (ETS) this year and remove forestry from the ETS. There would be funding for a range of regional rail lines across the country and light rail lines in Auckland, Wellington and Christchurch. The Green Party planned to go on a tour across the country with their alternative budget this month.
