Budget ‘step along way’ to re-election, PM says

Prime Minister Bill English won’t go as far as saying last week’s budget will win National the election but says it’s a “step along the way.”

As well as talking up his finance minister’s first budget at this week’s post-cabinet press conference, the prime minister took the time to criticise the opposition.

“It was certainly sufficient for the Greens and NZ First to vote for the budget.”

Both parties voted in favour of the government’s Family Income Package last Thursday night.

Mr English took this as an opportunity to have a crack at National’s opposition parties.

“If they can’t organise themselves in opposition, I wonder how they could possibly organise themselves in government.

“In opposition, all you have to do is oppose what the government does – it looks pretty easy but they cannot manage that.”

In regards to how last week’s budget will help National come Election Day, he says it’s a “step along the way to an election but it’s no guarantee of winning an election.”

The most recent Roy Morgan political poll – unveiled on May 26 and conducted before the budget – shows National’s support at 43%, a whisker ahead of Labour/Greens combined support of 42.5%.

The government’s budget has been criticised by some, such as Labour Party leader Andrew Little, as “an election year bribe.”

The government allocated $2 billion a year for a family package, which includes increasing tax thresholds and scrapping the Independent Earning tax credit.

Adjustments to income tax thresholds will deliver $11 a week ($560 a year) for workers on more than $22,000 and at least $20 more ($1060 per year) for those earning more than $52,000.

During the budget lockup, Finance Minister Steven Joyce was asked if the budget was “an election bribe,” to which he responded, “no, not at all.”

Mr Joyce also unveiled an extra $4 billion in new capital spending, which will be spent on projects such as Kaikoura’s state highway and KiwiRail’s freight business.

Some 56% of NBR poll participants rated the finance minister’s budget as “safe and steady.”