The 'B' List - Labour's Uncosted Policy Commitments
1 November 99
Commitments with longer phase-in
Labour has made some commitments that it has said will be phased-in over more than 3 years, including:
establishment of a Superannuation Fund
removal of asset testing for geriatric care
increasing foreign aid to 0.7% of GNP.
Uncosted Commitments
Labour now has 176 uncosted policy initiatives. Many may be fiscally neutral or offset by savings elsewhere, but some
are quite expensive, for example:
R measures, including increasing the Marsden Fund, full tax deductibility & accelerated depreciation (Mark Peck talking to IRL, March 99)
establishment of Community Employment Organisations (CEOs) which Steve Maharey has said is the most expensive part of
Labour's employment policy and would cost "many millions"
6 weeks taxpayer-funded parental leave to be increased to 12 weeks when economic conditions permit (Pete Hodgson
quoted in the Dominion 25/10/99). No details have been provided on eligibility criteria or the level of payment, making
the cost difficult to estimate
Labour's ACC Policy document of July 99 includes a number of policies of which the most expensive is the gradual
change to treat sickness the same as accidents. Officials estimate the cost at $572m when fully implemented. The
policies also involve major costs to business resulting from the removal of competition from the accident insurance
market. Offsetting these costs would be some savings resulting from Labour's policy of only partially funding the
scheme.
ENDS