Connect with us

HTML Image

i

Latest News

Opinion: Budget 2023 childcare policy unlikely to ease inflation pressure on households

Published

on

By Brigitte Morten*

Opinion – The sales pitch of Budget 23 is the expansion of the childcare 20-hour free subsidy to two-year-olds. It looks great on paper. Eligible families could gain up to $133 per week back in their household budget. But a good headline does necessarily mean good news. Scratch the surface and this policy is unlikely to be the relief families are looking for.

The expansion will cost $1.2 billion over four years. It alone is unlikely to be the reason inflationary pressure remains high but, combined with the new spend in other areas, Budget 23 has blown the operational and capital expenditure higher than expected. Saving $133 on a childcare bill but a household continuing to pay higher prices at the supermarket checkout means many families may not get that further ahead.

Combine that with likely push back from the Reserve Bank to counter inflation and the cost of debt, including mortgages, will continue to increase. Last month, Westpac predicted rising interest rates will mean some families will be paying $900 more per fortnight once they come off low fixed rates.

In the Budget, Treasury forecast interest rates are likely to stay higher for longer to manage inflationary pressure. Families expecting the subsidy in March are likely to have been making higher mortgage payments for at least six months before they see the benefit of the subsidy.

A $133 increase looks like chump change.

Treasury plans to issue $120b of New Zealand Government Bonds over the next four years. That is $20b more than forecast in December. The cost of the subsidy is a notable part of the reason for doing so. That debt must be paid back by future generations. So, it equates to a quasi-student loan for two-year-olds.

The March delay to subsidy expansion is politically beneficial for Labour. It makes it difficult for National to oppose it as unnecessary expense in the lead up to the election. They have already recognised additional spend in early childhood is needed and have their own childcare policy – Family Boast. Their tax rebate policy would see all eligible families get up to $75 per week. For many families that will work out a better deal. At least we know now why the government was so uncomfortable when National announced the policy in March – today’s childcare plan would have been close to locked in.

Read more on Budget 2023:

Alongside the expansion of fees free was an increase to the subsidy for childcare by 5.3 percent. But this is unlikely to do much to fix the significant issues in early childhood delivery. The Early Childhood Council states on average at least two centres per week are closing. Many of these in low socio-economic areas, further reducing the access to learning. Some of these will be due to an inability to recover from Covid, the costs of operating are simply too high. The government’s pay parity, which makes it more expensive to hire experienced teachers, has also increased the pressure.

Even Education Minister Jan Tinetti seemed to admit defeat on this, stating the increase in subsidy would “reduce the need to raise fees at Kōhanga and kindergarten”. An acknowledgment that centres will continue to do it tough.

Excited families hoping for relief in the budget announced on Thursday are likely to be disappointed. March is a long time away and the Budget papers forecast it will be paved with difficulty. A $133 reduction in childcare costs should not be minimised but when you put in in context with the issues facing families, it will hardly make a dent.

*Brigitte Morten is a senior consultant at Franks Ogilvie. She has been a senior ministerial adviser to the Minister of Education in the National-led government, and an adviser and campaign director for Australia’s Liberal Party.

 

VIA RNZ

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Police say person who fired gun at officers still at large

Published

on

Police say a person who fired a gun at officers in Napier is still at large.

Eastern District Commander Superintendent Joel Lamb said Police tried to stop a vehicle in the Pirimai Area at about 10pm on Tuesday.

He said someone in the back seat pointed what was presumed to be a firearm at officers pursuing the vehicle.

“Staff have then heard two distinct gunshots as the firearm was discharged.

“Fortunately, neither of our officers were injured, and the patrol vehicle did not sustain any damage.”

He said hours later, the vehicle was seen travelling north on the Waikato Expressway towards Auckland.

Police seized the vehicle at an address in Manurewa, but they had not found the alleged offender.

Lamb said people who lived at the Manurewa address were engaging with Police.

He said Eastern District and Counties Manukau Police were making enquiries.

“Presenting a firearm at a Police officer is a serious escalation that puts our staff and the wider community at risk. This behaviour is entirely unacceptable.

“We are taking this incident extremely seriously and will be pursuing all lines of enquiry to locate the offender and hold them accountable.”

Police asked anyone who witnessed the incident to contact Police on 105 or online using the reference number 261111/3764.

Information could also be provided anonymously via Crime Stoppers on 0800 555 111.

rnz

Continue Reading

Latest News

New Zealand sides named for RLWC finals

Published

on

The players tasked with ending Australia’s Rugby League World Cup dominance have been named.

The Kiwis and Kiwi Ferns have announced their squads for this Sunday’s World Cup finals in Brisbane.

Both sides are chasing their first titles since 2008, and both are looking to end their opponents run of three crowns in a row.

“Our Kiwi Ferns have been so dominant in years gone by, and we want to bring dominance back to this jersey, so I think it will be a case of who wants it more,” said co-captain Georgia Hale of the impending clash.

The Kiwis get a major boost for the final as they welcome back Ronaldo Mulitalo after he served a one-match ban for a high tackle against Fiji Bati.

Mulitalo replaces Charnze Nicoll-Klokstad, who moves to the six-man bench, which again includes utility Te Maire Martin, middle forwards Naufahu Whyte, Erin Clark and Xavier Willison plus fullback Keano Kini.

Loose forward Joseph Tapine will make his 30th Test appearance in a familiar pack again, including second-rowers Isaiah Papali’i and Briton Nikora, and props James Fisher-Harris and Moses Leota.

Winger Jamayne Isaako is on the cusp of claiming the New Zealand record for most Test points.

His five goals against Tonga lifted his career points tally to 225 – level with Shaun Johnson – while centre Casey McLean goes into the final with 16 tries in just eight Tests.

Fisher-Harris will again captain the team.

Fullback Ponga said the goal of the group was clear.

“We have high expectations around what we want to achieve, and obviously winning a world Cup is one of them.”

Meanwhile, Ricky Henry has selected a settled side to take on the Jillaroos, led by their lethal centre combination of Stacey Waaka and Mele Hufanga.

Veteran Apii Nicholls takes the number one jersey, Leianne Tufuga and Mackenzie Wiki on the wings.

Henry has stuck with his halves pairing of Chantay Kiria-Ratu and Raecene McGregor with Alexis Tauaneai, Georgia Hale and Otesa Pule up front.

Rounding out the starting pack is Shaniece Monschau, Kaiyah Atai, and Angelina Teakaraanga-Katoa.

“We have been building well throughout the tournament; we understand the Jillaroos side, and will give it our all to make New Zealand proud this weekend,” said Henry.

RLWC Finals:

Kiwi Ferns vs Jillaroos- 6.10pm

Kiwis vs Kangaroos – 9.35pm

Sunday November 15

Suncorp Stadium, Brisbane

Live blog updates on RNZ

Kiwi Ferns:

1. Apii Nicholls 2. Leianne Tufuga 3. Mele Hufanga 4. Stacey Waaka 5. Mackenzie Wiki 6. Chantay Kiria-Ratu 7. Raecene McGregor 8. Alexis Tauaneai 9. Georgia Hale 10. Otesa Pule 11. Shaniece Monschau 12. Kaiyah Atai 13. Angelina Teakaraanga-Katoa.

Interchange: 14. Ashleigh Quinlan 15. Annessa Biddle 16. Shannon Mato 17. Ivana Lauitiiti.

Reserves: 18. Brooke Anderson 19. Zahara Temara 20. Brianna Clark 21. Abigail Roache 22. Tenika Willison.

Kiwis:

1. Kalyn Ponga, 2. Jamayne Isaako, 3. Dane Gagai, 4. Casey McLean, 5. Ronaldo Mulitalo, 6. Kodi Nikorima, 7. Jahrome Hughes, 8. James Fisher-Harris (c), 9. Jeremy Marshall-King, 10. Moses Leota, 11. Isaiah Papali’i, 12. Briton Nikora, 13. Joseph Tapine (v/c).

Interchange: 14. Te Maire Martin, 15. Naufahu Whyte, 16. Erin Clark, 17. Xavier Willison.

Reserves: 18. Keano Kini, 19. Phoenix Crossland, 20. Charnze Nicoll-Klokstad, 21. Scott Sorensen, 22. Leo Thompson.

rnz

Continue Reading

Latest News

Parliamentary Service working on extra chairs and offices for increased number of MPs

Published

on

The chief executive of the Parliamentary Service is confident there will be enough room to accommodate the increased number of MPs and their staff coming into Parliament.

On current numbers, up to 131 MPs could be sitting in the Chamber following the election, brought on by a record overhang result.

Clerk of the House of Representatives Dr David Wilson told the Spinoff that currently the debating chamber had enough chairs to seat 124 MPs – including the Speaker of the House – and work was being done to accommodate more by altering the seating arrangement.

In a statement, Parliamentary Service chief executive Rafael Gonzalez-Montero said planning for a larger Parliament had been going for “some time”.

“Now that the election results have confirmed an increase to the number of members we are looking at several options.

“We are confident we will be able to accommodate all members within the Chamber.”

Chief Executive of the Parliamentary Service Rafael Gonzalez-Montero appears before select committee.
Parliamentary Service chief executive Rafael Gonzalez-Montero.

VNP / Phil Smith

Gonzalez-Montero said office accommodation for members and their staff would be “stretched” for a short time, but the new Members’ Building was only a few months away from “practical completion”.

That building – located behind Parliament – was due to be ready to occupy in April next year and had capacity to accommodate around 30 backbench MPs.

“All members should be in fit-for-purpose accommodation from that point,” Gonzalez-Montero said.

Following the 2023 election, 123 MPs sat in the Chamber – a record number at the time. That decreased to 122 following the resignation of National MP Judith Collins.

Collins held the seat of Papakura and stepped down in May and Parliament voted against holding a by-election because it was too close to the election.

The election result also meant high-ranking National Party MPs like Chris Bishop, Paul Goldsmith, Nicola Willis and Gerry Brownlee – Speaker of the House and an MP for 30 years – would likely not make it back into Parliament.

Only resigning or retiring MPs were permitted to give a valedictory speech meaning none of them would get the chance to give a valedictory statement.

Asked if their would be special allowances for valedictories, Wilson said in a statement that normally only MPs were allowed to speak in the House but the House could suspend its own rules or temporarily alter them.

“It could do so to allow former members to address the House.”

Wilson said no such arrangements could be made until the next Parliament opened and members sworn in.

rnz

Continue Reading

Trending

Copyright © 2026 The Buzz: Powered by Apna Network Limited - Concept by Digital Hub NZ