Prominent environmental groups in Aotearoa New Zealand are less than impressed with what they describe as underwhelming budget investments in climate, but an expert says the government has taken a multifaceted approach.

Among the announcements yesterday was $402.6 million to expand the duration and scope of the Warmer Kiwi Homes programme, $120 million to expand EV charging infrastructure, $100 million fund to help councils invest in future flood resilience, $24.7 million to improve data on impacts of climate change and adaptation and mitigation, and $167.4 million in building resilience to future climate events.

It came on the same day the World Meteorological Organisation said global temperatures were now more likely than not to breach 1.5 degrees Celsius of warming within the next five years.

Forest and Bird said the budget did little to tackle climate change and turn around biodiversity loss.

“Keeping New Zealanders safe is clearly a ‘bread and butter’ issue, yet the government’s lack of investment in nature-based solutions is putting us all at risk,” chief executive Nicola Toki said.

“What we looked for but have not found, is meaningful investment in nature-based solutions to climate impacts. And our biggest source of greenhouse gas emissions, agriculture, has not yet been priced more than 30 years after New Zealand promised the world it would cut emissions.”

The government’s $6 billion infrastructure-focused National Resilience Plan needed to prioritise investment in areas like river catchments, forests, and wetlands — otherwise it might even affect people’s ability to get insurance in the future, Toki said.

Insulation and heating retrofits
Electricity Networks Aotearoa chief executive Richard Le Gros said the association, which represents New Zealand’s 27 electricity distribution businesses (EDBs), supported the focus in the budget on decarbonisation initiatives as well as insulation and heating retrofits.

“We welcome the government’s greater investment in public EV charging infrastructure throughout the country,” Le Gros said, adding it would help reduce household energy bills and encourage a green transition.

Greenpeace climate campaigner Christine Rose was critical of the government for missing the chance to implement radical change in farming, climate solutions, transport, and energy.

“While it’s positive to see that half-price fares remain for some, we needed bolder and more visionary strategies, including significant investment in expanding rail and making public transport fares free for all,” Rose said.

“We welcome the funding boost for home insulation and heat pumps, but are disappointed not to see significant investment in locally-owned renewable energy.

“This would end our dependence on oil, gas and coal, and also reduce the power bills of everyday New Zealanders, addressing both the cost of living and climate crisis.”

Long-term behaviour change
University of Canterbury professor Bronwyn Hayward said the budget appeared “deceptively simple” but, for example, allowing children to use public transport for free was not just about increasing bus use, it would also ease family budgets and instigate long-term behaviour change.

“Critics of the government will rightly point out there is now less money available to spend on climate resilience due to the crash in carbon pricing, and yet a sizable new spend of $1.9 billion has been allocated in this budget for climate resilience alongside the $1 billion pledged for cyclone recovery,” Hayward said.

“This, together with spending on retrofitted housing, new homes, prescription charges and school lunches all contributes to the social infrastructure that communities will badly need when facing ongoing climate risk.

“We need to join the dots when we talk about climate budgets and see how many of the wellbeing initiatives are also very real investments in climate resilient futures too.”

While making transport more equitable was important, University of Auckland School of Architecture and Planning senior lecturer Timothy Welch said the focus should also be on the infrastructure’s resilience as more intense and frequent weather events could be expected.

“New funding for maintaining public transport service and workforce development is important, but we need more funding to expand our public transport networks and help drive down transportation emissions.”

Research, science, and tech
Universities New Zealand welcomed the announcement of $55 million for research fellowships and an applied doctoral training scheme, as well as the allocation of $451 million for multi-institutional research collaboration hubs in the Wellington region focused on health and wellbeing, oceans, climate and hazards, advanced manufacturing, biotech and energy futures.

However, it said it was unfortunate to see funding for the Centres for Asia-Pacific Excellence had been discontinued.

Professor Hayward said integrating science agencies based in Wellington was important, but it omitted “arts and imagination”.

“The climate crisis will bring repeated, cascading and compounding weather events that will test our resolve and tear at the fabric of our society. These are not challenges which can be fixed by science or investment in infrastructure alone,” Professor Hayward said.

“We need the arts, alongside sciences to help imagine a low-carbon economy in fair and just ways,” she said.

“While government could justifiably argue its attention to digital screen industries is a creative investment in ‘a high-wage low emissions and creative economy’ we also need a wider vision for the deeper integration of arts and sciences, one which helps us imagine new ways we might yet flourish in a climate challenged world.”

Addressing inequities
Environmental consultant Andrea Byrom said it was heartening to see some of the tertiary investment addressing long-recognised inequities, with dedicated fellowships and awards for Māori and Pacific people and a boost to provision of Mātauranga Māori in the tertiary sector, and applied postdoctoral fellowships.

Byrom also applauded trialling apprenticeship training in the tech sector and boost to research fellowships and PhDs.

“The historical gap in funding for these types of fellowships, particularly at postdoctoral level, has resulted in much of Aotearoa New Zealand’s best and brightest talent heading offshore — sometimes never to return.

“Hopefully these fellowships will stem that flow.”

Malaghan Institute director Graham Le Gros said the investment in science and innovation recognised the sector’s value to the country’s resilience and prosperity.

“From building resilience in the face of future pandemics to investing in biotech, innovation and talent to help move New Zealand to a high-wage economy, we can rejoice in some much needed infrastructure so that all New Zealand scientists have a place to really focus their energy and attention,” Le Gros said.

“The multi-institutional research hubs will increase collaboration and productivity, allowing us to work together to tackle some of New Zealand’s most pressing challenges and opportunities.”

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

Young families are the clear target of Labour’s election-year Budget, but its flagship promise – cheaper childcare – will not kick in until next year.

The 2023 Budget — billed as a “no frills” affair — is set against a volatile economic backdrop with the government now forecast to return to surplus a year later than expected.

In a statement, Prime Minister Chris Hipkins said his first Budget would provide relief from the sharp cost of living without exacerbating inflation “as tax cuts would”.

“Budget 2023 isn’t fancy, nor should it be . . .  it’s a carefully calibrated package that deals with the here and now pressures, while also laying the foundation for real long-term benefits.”

‘Support for today’
The Budget extends cheaper childcare to parents of two-year-olds, giving them access to 20 hours a week of free early childhood education (ECE). That support currently kicks in for children from the age of three.

For eligible families, the extension could save them more than $130 a week in childcare costs for an extra year.

They will have to wait, however, until March next year — critically after the election — for the $1.2 billion package to come into effect.

Speaking during the lock-up at Parliament, Finance Minister Grant Robertson told RNZ the delay was primarily due to administrative reasons.

From July this year, public transport will be made free for all children under 13 and will remain half-price for passengers aged 13 to 24. That initiative is costed at about $327 million over four years.

The existing discount on bus, train and ferry fares will expire for most other people at the end of June, except for Community Service Card holders. As signalled, the accompanying fuel discount will finish at the same time.

Most prescription medicine will be made completely free from July, with the government scrapping the current $5 charge at a cost of about $619 million over four years.

‘Building for tomorrow’
The government has committed $71 billion of infrastructure spending over the next five years — that is money for building schools, hospitals, public housing, roads, etc. The spend is up about 60 percent from the $45 billion spent over the previous same period.

On top of that, another $6 billion has been set aside for a National Resilience Plan with an initial focus on future-proofing road, rail and other infrastructure wiped out by extreme weather.

Three new multi-institution research hubs will be set up in Wellington at a cost of $451 million. Each will focus on a different subject: Climate change, health, and technology.

A new 20 percent rebate will be made available for game development studios who spend at least $250,000 a year in New Zealand as an incentive to keep them from moving abroad. Individual studios will be eligible for up to $3 million a year in rebates.

Tax, tax, tax
As promised, the Budget does not include any major new taxes or tax cuts, but it does increase the trustee tax rate from 33 percent to 39 percent — in line with the top personal tax rate.

Revenue Minister David Parker said the discrepancy was currently allowing super-wealthy taxpayers to funnel their income through trusts to avoid paying their fair share of tax.

Both Inland Revenue and Treasury had recommended the change when Labour introduced the new top personal tax rate in 2021.

The trustee tax hike is estimated to raise about $350 million a year, beginning in April next year.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz