9 November 2017
Transparency needed on Government spending plans
The new Government needs to be much clearer on its spending plans so that public institutions like Treasury and the
Reserve Bank have sufficient information to perform their roles effectively, National Party Finance Spokesperson Steven
“This morning’s Monetary Policy Statement from the Reserve Bank makes numerous mentions of domestic policy uncertainty
including ‘uncertainty around tax policy’, uncertainty around the ‘future impact of these policy changes’ and
‘heightened uncertainty regarding the domestic outlook,” Mr Joyce says.
“While the Bank is taking a steady as she goes approach at this point, it is clear that their economic forecasting is
affected by a lack of clarity from the new Government as to their fiscal and economic plans.
“This is not a surprise as we are all still yet to see the figures underpinning the coalition agreement between Labour
and New Zealand First, which was signed over two weeks ago, and we are all still yet to see the Government’s mythical
final 100 Day Plan.
“Yesterday’s Speech from the Throne contained 51 new spending commitments, which will put significant pressure on the
Government’s spending track and net debt.
“The first Bill In Parliament this week seeks to legislate for $325 million of extra spending, without any reference to
how this fits in to the government’s wider spending plan.
“The public will rightly be concerned that the large number of spending promises they have heard about could sacrifice
New Zealand’s hard work to get back into surplus and start paying down debt.
“The irony is that in recent years all the economic risks have been offshore. Now just as the world economic outlook is
strengthening, all the risk and uncertainty is being generated domestically by the economic opaqueness of the new
“It is time for the Government to be much more transparent and start releasing more details of their fiscal plans.”