Grant Robertson comments on Govt’s $9.4bn deficit while Kelvin Davis announces $5.4m spending on Kaitāia Airport upgrade
An airport in the Far North is the beneficiary as the government dips into its $6 billion National Resilience Plan.
Cyclone Recovery Minister Kelvin Davis delivered the news that $5.4 million has been approved for urgent maintenance and upgrade works for Kaitāia Airport.
While he was announcing this latest chunk of spending, Finance Minister Grant Robertson was commenting on financial data which showed that, for the year to the end of June 2023, the Operating Balance before Gains and Losses (OBEGAL) recorded a deficit of $9.4 billion.
That was below the forecast of a $10 billion deficit in the Pre-election Economic and Fiscal Update (PREFU) and below last year’s $9.7 billion deficit.
Core Crown tax revenue in the June 2022/23 year was $3.9 billion higher than a year earlier at $112.4 billion, mainly due a growing economy with more people in work, and in line with what was forecast in the PREFU.
Core crown expenses was $127.6 billion, just below the $128 billion forecast in last month’s PREFU. As a proportion of GDP, expenses fell to 32.2 percent of GDP in the June 2022/23 year down from 34.5 percent a year earlier.
Net debt stood at 18 percent of GDP, slightly below that forecast in PREFU and well below
“New Zealand’s strong fiscal position has been endorsed by the major ratings agencies, who continue to have confidence in the strength of the New Zealand’s economy to withstand future shocks,” Robertson said.
But he has not posted his statement on the government’s official website for reasons unknown to Point of Order.
And his statement did not mention that the deficit for the year ended June of $9.4 billion compared with forecasts in May of a deficit of $6.96b.
ACT leader David Seymour seized on the end-of-the-financial-year figures to crow:
“News that the Government ran a $9.4 billion deficit in the year to June, after forecasts as late as May predicted a deficit under $7 billion show how much trouble the Government’s books are in, and why taxpayers need ACT,” says ACT Leader David Seymour.
“Grant Robertson has increased spending by 30 per cent – that’s after accounting for population growth and inflation. Somehow, he’s managed to get worse results from nearly every public service in the process. The next Government will need an economic conscience, someone to stand up for the rights of the taxpayer, and that’s where ACT comes in.”
Since our last monitoring of the government website, only two new statements have been posted:
That was below the forecast of a $10 billion deficit in the Pre-election Economic and Fiscal Update (PREFU) and below last year’s $9.7 billion deficit.
Core Crown tax revenue in the June 2022/23 year was $3.9 billion higher than a year earlier at $112.4 billion, mainly due a growing economy with more people in work, and in line with what was forecast in the PREFU.
Core crown expenses was $127.6 billion, just below the $128 billion forecast in last month’s PREFU. As a proportion of GDP, expenses fell to 32.2 percent of GDP in the June 2022/23 year down from 34.5 percent a year earlier.
Net debt stood at 18 percent of GDP, slightly below that forecast in PREFU and well below
“New Zealand’s strong fiscal position has been endorsed by the major ratings agencies, who continue to have confidence in the strength of the New Zealand’s economy to withstand future shocks,” Robertson said.
But he has not posted his statement on the government’s official website for reasons unknown to Point of Order.
And his statement did not mention that the deficit for the year ended June of $9.4 billion compared with forecasts in May of a deficit of $6.96b.
ACT leader David Seymour seized on the end-of-the-financial-year figures to crow:
“News that the Government ran a $9.4 billion deficit in the year to June, after forecasts as late as May predicted a deficit under $7 billion show how much trouble the Government’s books are in, and why taxpayers need ACT,” says ACT Leader David Seymour.
“Grant Robertson has increased spending by 30 per cent – that’s after accounting for population growth and inflation. Somehow, he’s managed to get worse results from nearly every public service in the process. The next Government will need an economic conscience, someone to stand up for the rights of the taxpayer, and that’s where ACT comes in.”
Since our last monitoring of the government website, only two new statements have been posted:
Latest from the Beehive
5 OCTOBER 2023
The Government has approved $5.4 million dollars for urgent maintenance and upgrade works for Kaitāia Airport, safeguarding the airport’s future.
It was with much sadness that I learned of the passing of accomplished sportsman Jason Wynyard MNZM (nō Ngāpuhi, me Ngāti Maniapoto) on Wednesday.
The funding announced by Kelvin Davis, combined with funds set aside by the Far North District Council to support work on Kaitāia Airport, will enable works to be undertaken to ensure Kaitāia Airport’s continued reliability, resilience, and operation.
This includes works to the main runway and maintenance of the existing drainage network, the replacement of security fencing; upgrades in airfield lighting, installation of aircraft fuelling facilities, and load improvements.
The announcement builds on the recent $44 million investment made by the Government to ensure the state highways in Northland are also resilient.
Davis said Kaitāia Airport is a critical resource for Te Tai Tokerau’s communities but is in dire need of urgent upgrades to stay operational, which the funding will allow.
“This is an important investment in regional resilience,” Kelvin Davis said.
The airport land was offered to Ngāi Takoto as part of their Treaty settlement in 2012, on the condition that airport operations would continue. Ngāi Takoto intend to purchase the airport land as part of their Treaty settlement provisions and have been working with hapū of Ngāti Kahu, who also have interests in the airport land, to finalise the agreement.
“Kaitāia Airport is key to the resilience of the Far North community. It provides direct access to health services, has been used previously for civil defence purposes and is an alternative when State Highway 10 closes,” Kelvin Davis said.
“Te Tai Tokerau’s road access to the rest of the country is regularly severed by slips and floods – these investments will help communities as well ensuring the ongoing utility of existing infrastructure.”
The funding obviously will be welcomed by the people of the Te Tai Tokerau electorate.
Davis, who is Labour’s deputy leader, is the incumbent MP and has opened up a six-point gap over his Māori Party rival in the campaign to hold – or win – the Maori seat.
A Whakaata Māori poll shows Davis is on 32 percent as the preferred candidate with peak support among over-60s, however, older voters make up only 22 percent of the electorate which runs from Northland down to the North Shore of Auckland.
Te Pāti Māori candidate Mariameno Kapa-Kingi is on 26 percent with her highest support among under 40s who make up 43 percent of the electorate.
In the party stakes, Labour claimed 35 percent support for the preferred party, followed by Te Pāti Māori on 22 percent, Greens (9 percent), National (8) and ACT were on 4 percent. A total of 9 percent were undecided.
The poll, conducted by Curia Market Research, found that the cost of living was the biggest issue for Te Tai Tokerau voters at 34 percent. It has been the biggest issue for all five Māori electorates polled to date.
Other major issues in the northern seat were the economy at 9 percent and honouring the Treaty of Waitangi at 6 percent.
On the leadership question, Chris Hipkins was the preferred prime minister with 27 percent, Rawiri Waititi on 12 percent, Christopher Luxon gained 11 percent support and Winston Peters was on 10.
Polling was completed on 3 October. A total of 500 registered voters in Te Tai Tokerau were polled by landline, mobile and online with a margin of error of plus or minus 4.4 percent at the 95 percent confidence level.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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