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

A new $100 million apartment complex is coming to Manukau — Auckland’s heart of Pacific communities.

But you’ll have to be aged at least 55 to get in.

Kāinga Ora is expected to start construction of the 123 apartments in Osterley Way in March. The 16-storey tower will include 94 one-bedroom and 29 two-bedroom apartments.

The government said it was necessary to target targeting specific age groups to match an increasing demand from “older customers”.

“Kāinga Ora recognises our older customers have specific housing needs, which we are addressing through senior housing developments such as the proposed project in Manukau,” regional director for Counties Manukau Angela Pearce said.

Pearce said one in five of the agency’s homes in Counties-Manukau had someone over 65 living in it, while 670 of its homes in the area were occupied by sole tenants in the same age group.

“With an aging population, Kāinga Ora recognises the importance of dedicated senior housing where our older tenants can live well, feel safe and secure, both in their homes and the community.”

Two years on state house list
Maureen O’Meara, 75, spent two years on the state house waiting list and was renting a two-bedroom unit in Pakuranga for $420 a week until earlier this year.

“I had $17 left a week after paying the rent,” O’Meara said. “Being on a pension and paying market rent meant I didn’t have a lot of money left to live on.”

O’Meara managed to find somewhere more affordable in May after she was put in touch with Haumaru Housing, a joint venture between Auckland Council and the Selwyn Foundation.

But O’Meara said the Manukau development reflects an increasing number of people reaching retirement without a home.

“And I think there’s going to be a need for more places like it,” she said.

Age Concern Auckland chief executive Kevin Lamb said it’s important the development was close to public transport and community facilities.

“We think it’s high time older people had accommodation that is new and more appropriate for their needs.”

Big part of pension on housing
Recently-released research by Te Ara Ahunga Ora Retirement Commission showed superannuitants still paying rent were more likely to be spending 40 percent or more of their pension on housing.

While long-term trends suggest more older New Zealanders are likely to still be renting in their retirement.

Te Ara Ahunga Ora director of policy Dr Suzy Morrissey said with declining home ownership rates there was a growing need for public housing and accommodation for those aged 55 and over.

“When NZ Super was introduced, it was with the underlying assumption that those accessing it would be mortgage-free homeowners,” she said.

“Today, the reality is very different. There are declining home ownership rates, more people needing to continue working longer because they still have mortgages to pay, are paying rent, or haven’t been able to save enough to retire.”

• Auckland is currently in the middle of the local body elections with a Pacific candidate, Fa’anānā Efeso Collins, one of the two top contenders for mayor of the super city.

Article by AsiaPacificReport.nz

Critics of New Zealand’s new $4.5 billion global warming plan to help New Zealanders into electric vehicles and hybrids say a significant cheque for the Clean Car programme is sending the wrong message about the role cars play in the country’s future.

Victoria University of Wellington’s environmental studies Professor Ralph Chapman said — electric or not — cars were still heavy on the wallet and on the environment.

“The sheer carbon emissions associated with running cars, the life cycle of a car and all the infrastructure that goes with it — like highways and more spread-out infrastructure for water and waste water … when you start to add it all up, cars are pretty much a disaster.”

Professor Chapman said there were still carbon emissions that went into making EVs and the like, as well as the emissions involved in importing them to New Zealand.

“The whole model has to change, rather than just encouraging people to go to a slightly more efficient car.”

Professor Chapman said the alternative option of scrapping an old car in return for money towards buying a bike or using public transport was a good move.

Free Fares lobby disappointed
Free Fares, which is lobbying the government to make all public transport free, is also disappointed in the scheme.

A spokesperson for the group said the wider Emissions Reduction Plan was “a continuation of an individualised culture and a focus on car ownership” rather than public transport, “which is what we need”.

Low-income families who scrap their old car will get funding to buy a low-emitting vehicle in a $569 million scheme, one of the big-ticket items in the government’s first Emissions Reductions Plan.

The money will not just be for electric vehicles – it could also help buy an e-bike or could be in the form of public transport vouchers.

But there was very little detail released about the scheme, such as who exactly will be eligible and – critically – how much financial help they would get.

New Zealand’s first Emissions Reduction Plan. Video: RNZ News

A pilot will be rolled out for 2500 households first, before an expansion of the scheme in about two years’ time.

Climate Change Minister James Shaw yesterday said it would follow a similar scheme which was introduced in California.

Those who took part in one scheme there got about $NZ15,000 off the price of a new or second hand EV.

“Notoriously challenging” says MIA
But even if a similar discount was offered here, it would still be costly, and “notoriously challenging”, the Motor Industry Association (MIA) said.

Chief executive David Crawford said the cost of new EV imports started at $40,000 and went upwards of $80,000, whereas used models started at about $20,000.

“If it is a new EV, their prices are quite high; would [eligible people] be able to afford debt servicing the difference? The price gap for a new EV can still be big,” Crawford said.

New Zealand has many old cars still being driven around; they pollute more and aren’t as safe so the MIA said it was supportive of moves to get more of them off the road.

The Motor Trade Association (MTA), which represents mechanics and repair shops, wants the government to go further than the $569m scheme, and roll out a scrappage model for everyone.

Its energy and environment manager Ian Baggott said it would be a challenge for the government to determine the criteria for scrappage.

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

Article by AsiaPacificReport.nz

The public’s cry for a safe, affordable and efficient public transport system in Papua New Guinea’s capital Port Moresby has been finally heard.

Following almost 10 years of planning and preparations, the National Capital District Commission’s Eda City Bus Service started operations today.

The service will pursue a modern city bus transport model operating in eight routes across the National Capital District, all of which are not currently serviced by the Public Motor Vehicle (PMV) minibus operators in the city.

Speaking at the inauguration event yesterday NCD Governor Powes Parkop said it had been a long time in planning and it was good to finally make it a reality.

“It is high time that we create a sustainable, reliable, safe and efficient public transportation system in our city and today we are creating a baseline that will set the pace for our city’s public transportation to be taken to new levels of efficiency, one that we can build on from and make it even better,” he said.

The bus service will be charging everybody K1 (NZ42c) from point A to point B and will be servicing routes following a set schedule.

Each schedule for each route is available at bus terminals where the public can easily access.

With the aim of achieving safe and efficient transportation, there will be safety, security and revenue officers on board each bus to ensure passengers are safe and adhere to set regulations.

The routes include:

• Route 1: Gerehu – Red Hills – Morata Swamp- 8 Mile junction – 9 Mile junction – Bomana Junction;
• Route 2: Gerehu – Ela Beach – Baruni – Badihagwa;
• Route 3: Ela Beach – Sir Hubert Murray Stadium – Poreporena Freeway – Gordons Courts Roundabout;
• Route 4: Gerehu- Sir William Skate Highway – Magani Crescent Road, Morata Junction – Wagani Tokarara Bustop- Tokarara Market – Koura way- Sir Hubert Murray Stadium; and
• Route 5: 9 Mile – Manu bus stop – 8 Mile – Erima – 7 Mile – Saraga Market – Dogura Junction – Tuna Bay Junction – Taurama Barracks – Vadavada

According to Acting City Manager Ravu Frank there are two phases to this transport system.

The first phase which begins today will be a cash system where people pay money and get tickets for the first six months and the second phase will begin after where the system will transit into a cashless operation using cards.

The Eda City Bus Service is not the first public transport system to be introduced in Port Moresby.

In the 1960s a similar initiative called Port Moresby Bus Company was operating under the then city authority and providing a service until it was liquidated in 1981.

City partnership offered PMV operators
Meanwhile, the NCDC has invited PMV operators in Port Moresby to partner in upgrading the standard of public transport in the city.

Governor Parkop called for expressions of interest stating that there was room for everyone to work together and benefit while providing this essential service to city residents.

“I want to announce that we have a specific offer for the PMV operators to be part of this service going forward,” he said.

“The details of this will be announced later but the essence of this offer in partnership is this: NCDC will set up a business limited called Eda City Bus Limited.

“Eda City Bus Limited will be initially owned by NCDC but we will diverse the shares, including making offers to the operators and the owners who are current or even inviting investors from overseas, especially those who have experience who knows how to deliver this type of service providing both service and sustainability and if we can make profit too that is a bonus.”

However, the bus operators must meet the following requirements in order to qualify for this partnership.

• Maintain and operate quality and neat buses;
• Complete routes and adhere to timetables;
• Make it safe for passengers on board;
• Support Eda City Bus Service branding; and
• Follow the terms of the ticketing system.

Claudia Tally is a PNG Post-Courier reporter. Republished with permission.

Article by AsiaPacificReport.nz