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Budget expected to appeal to 'middle' New Zealand

Publish Date
Thu, 26 May 2016, 8:12AM
Napier Mayor Bill Dalton (NZ Herald).

Budget expected to appeal to 'middle' New Zealand

Publish Date
Thu, 26 May 2016, 8:12AM

Everything from housing, medicine, and bird conservation are among the around $965 million worth of promises coming in today's Budget.

National's eighth budget will be presented to Parliament by Finance Minister Bill English at 2 o'clock.

LISTEN ABOVE: Dr Deborah Russell talks to Rachel Smalley

Massey University's Dr Deborah Russell told Rachel Smalley she isn't expecting a lurch to the right from the government in this afternoon's Budget.

She is expecting the Budget will try to appeal to middle New Zealand.

"What they're trying to do is to keep that middle-ground of people who would look to maybe vote for them, maybe look vote for one of the other parties, who change their vote each time around. Mr Key and Mr English are trying really hard to cement their hold on those voters so they get a fourth term in Governmemt."

Dr Russell said the government will need something to respond to the social housing issue.

"So I think it will be judged to a certain extent. As I'm sure you know there's been a huge amount of media in the last few days around homelessness, so I guess people will be looking for the Government to respond to that. But it's interesting because Bill English has been dampening down expectations in that regard."

Dr Russell said the government may have looked at housing tax to slow the price rise.

"They've already deployed the bright line test. It will be interesting to see if they can do anything else around tax. They might do something around how housing is taxed in order to try and make those house prices slow down a little bit."

Political commentator Matthew Hooton told Mike Hosking the Government's also signalled plans to support infrastructure - in light of the migrant boom and strain on small communities coping with tourist numbers.

But when it comes to Auckland's infrastructure woes... he thinks it might be another story.

"It's really Auckland Council who's really not coming up with the money and I don't think that the Government's going to be wanting to announce more spending for things like rail loops and so forth, until Auckland Council starts to come up with it's share of the money."

New Plymouth's Mayor Andrew Judd is hoping the Budget will provide tax incentives to encourage workers to move rather than just shift the homeless.

"If the Crown or the Government was to incentivise, through their tax system, relocation of some of those jobs then that would surely alleviate the pressure on the houses in Auckland by spreading people around the country."

Leaders around the East Coast hope today's Budget will see money poured into economic development opportunities.

Napier mayor Bill Dalton said one of the biggest investments the Government should make is in roading.

"Best thing they could do for economic development in Hawke's Bay is to do up State Highway 2 to Wairoa, because that opens up some of the nicest tourist opportunities on the East Coast, so it will be good for the whole East Coast."

Mayor of Gisborne Meng Foon agrees.

"An increase in support for our roading network so we have big demand on forestry and other activities."

Newstalk ZB will have live coverage of the budget from 2pm today.

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