Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
6 JUNE 2016

English And Key Look Ridiculous on $10b Defence Shortfall

An expected $11 billion to be spent on defence in the next decade makes the Prime Minister’s talk of tax cuts next year look ludicrous and reckless, says New Zealand First leader and Northland Member of Parliament, Rt Hon Winston Peters.

“The government has been telling other countries of a capital investment in defence of $11 billion and yet this cost was totally omitted from the Budget projections.

“Minister of Finance Bill English said in Parliament the amount was in the Budget, although not set out in the way that matches the $11 billion description.

“Even worse, the Minister of Finance gave an answer that must be one of the most appalling in terms of this portfolio in the history of this country.

“He tried to toss away our concerns by saying Defence gets $100m a year to ‘increase its baselines’. For the Minister’s knowledge, over a decade that will only add to $1 billion – so there’s a $10 billion shortfall in the government’s own $11 billion Defence Spend Statements.

“The fact is the government will soon release a Defence White Paper which outlines an estimated $11 billion to be spent on defence replacement costs over the next decade and this amount was excluded from the Budget.

“As a result of this $11 billion, all the government’s Budget forecasts are meaningless and talk of tax cuts by the prime minister totally irresponsible,” Mr Peters says.

Quotes from Hansard June 2, 2016.

Rt Hon Winston Peters: If, in the Government’s words, $11 billion will be required on defence spending over the next decade, where was any of that accounted for in the last Budget projections?

Hon Bill English: The member can be reassured that it is in the Budget, although not set out in quite the way that matches that description. Defence has a long-term funding track for the first time ever, which is leading to a much more efficient and focused Defence Force, and each year it gets roughly a $100 million increase in its baselines. Over 10 years, that is roughly about – that roughly adds up to a lot of money.

ENDS

© Scoop Media