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Andrew Dickens: Brace yourself for more and more spend ups

Author
Andrew Dickens,
Publish Date
Wed, 12 Jul 2017, 7:28AM
The politicians can see surpluses and since it's election year they want to spend them, writes Andrew Dickens. Photo / Getty Images.
The politicians can see surpluses and since it's election year they want to spend them, writes Andrew Dickens. Photo / Getty Images.

Andrew Dickens: Brace yourself for more and more spend ups

Author
Andrew Dickens,
Publish Date
Wed, 12 Jul 2017, 7:28AM

This may sound confusing but I'm kind of resenting the fact that the country is doing so well, which means the government is doing well too.

And mark my words the government is doing very well indeed. The last figures I saw about the country's pocketbook had the operating surplus standing $4.5 billion for the 11 months to May, compared with the $2.9bn surplus that had been forecast.

The growing economy boosted tax revenue, which came in $1.1bn above expectations at $69.5bn.

If investment gains and losses are included, the operating surplus stood at $13.1bn!!!

Net debt totalled $59.3bn, or 22.4 percent of the value of the economy. That percentage is going down not just because we're paying off debt but the economy is getting better so it makes the debt look smaller.

So this is all pretty good but the problem is that this is election year and it seems as though every political party is looking at that 4 to 10 billion dollars and thinking of new ways to spend it that will get them the treasury benches.

National got the ball started right from the start of the year with their pay parity handout and then their 2 billion dollar family package a few weeks back. There was some tax cuts, boosts to the accommodation supplement and even more money to those receiving Working For Families. The infamous communism by stealth that John Key called it a decade ago.

I talked with Steven Joyce about it all a few weeks back on my Sunday programme and put it to him that this continuing middle class welfare was actually a sign that we're not doing nearly as well as we like to think. It's a sign that too many of our families can't get by even though they're gainfully employed. It's proof that we're a low wage economy and we need government help just to get by. Which is not good.

And so yesterday Labour tried to counter the spend up by National, who by the way seem more and more seem like Labour Lite.

To stand out Labour got even more liberal with the government coffers and it was disappointing that they want to add 30,000 more families into the Working For Families scheme. That's even more people who will become dependent on this latest form of benefit.

They also gave superannuitants a 50 buck a week universal bonus just because it's winter and cold. That will help those who can't afford to heat their home but people like my Mum who lives in a lovely warm apartment that doesn't need heating in winter will be rubbing their hands together. Not because they're cold.

It's all very complex and took me a while to get my head around so I'm not sure it's going to be a vote winner for Labour. National's family package was pretty well received and so Labour was forced to be even more generous. I guess all most voters will hear is that National will give tax cuts and Labour won't.

But the feeling I get is that all the politicians can see surpluses and since it's election year they want to spend them. And that's my resentment at the surpluses we've worked hard to gain. It's a lolly scramble that started early this time. Sometimes when the purse strings are a little tighter it becomes easier to find the people you want to vote for. Brace yourself for more and more spend ups. Each one more ludicrous than the next.

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