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Highlights
- Grant Robertson delivered another pre-Budget speech to the Wellington Chamber of Commerce
- He underlined healthcare, high wage, and a low-emissions economy as priorities
- Defends spending even if inflation touches a 7% mark
In his pre-Budget speech to the Wellington Chamber of commerce, finance minister Grant Robertson highlighted that this Budget would aim at moving towards a high-wage, low-emissions economy.
While he said he was hoping not to use the word COVID-19 pandemic as often this year, ‘the Pandemic remains ever-present’.
The Budget had come under attack recently for the number of new spending it includes, but the FM has defended the spending levels. The amount of new spending has a NZ$6-billion operating allowance. With inflation reaching a 7% level, he said certain decisions had to be taken even if they stoke inflation further.
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He clarified that the government would not give up investment because of high inflation. He said at the same time, the government would be mindful of the fact that the economy was experiencing capacity constraints, so it was spending accordingly.
Also Read: Healthcare, climate change to be main focus in upcoming NZ Budget: Grant Robertson
Steps towards high-wage economy
He said low productivity was a challenge to a higher-wage economy. Therefore, the government will focus on lifting research, development and innovation performance.
He said the government would be supporting businesses to access new markets, raise the capital they need and help provide a skilled workforce that will make them move forward. This includes the Industry Transformation Plans that are currently underway, the Regional Strategic Partnership Fund and the Digital Boost program, with all of them aimed at lifting productivity.
He said that the government already had schemes to provide skills and training opportunities to workers. More than 190,000 people have benefitted from free apprenticeships, targeted trade training and employment programs.
Also Read: What is wage inflation and how is it different from consumer price inflation?
He stressed that NZ would be drawing on global sources of knowledge and attract skills and investment to the country. For the last two years, inward migration had been constrained due to public health requirements, but as the Prime Minister also announced, the immigration rebalance would be achieved. A green list will provide a clear pathway for residency for workers with skills in demand.
We have been through an extraordinary period in which, inward migration has been heavily constrained due to public health requirements. This will enable the country to overcome the supply constraint in skilled jobs.
He said immigration would not be a barrier for high-skilled workers if it led to economic performance.
Low-Emissions Economy
The government will be releasing the Emissions Reduction Plan and a funding plan for the same. A fund has been created for the same by recycling revenue from the Emissions Trading Scheme.
Further, the FM said that the Budget would help businesses move towards low-emissions technologies. He said the Government particularly work with sectors that had emissions that were difficult to deal with. The government will help them make a transition to decarbonise.
He hinted that the Emissions Reduction Plan would help decarbonise private vehicles.
He said increasing the uptake of low-emissions vehicles would help NZ meet its emissions target.
