This morning in the wake of such comprehensive signaling of what to expect the pre-lockup working title of the Budget 2007 commentary had been "no surprises". Afterall we knew he was going to lower the company tax rate and grant savings incentives. But after a few hours locked up with what seems to be an alarming number of media and economists the conclusion has to be that this budget is significantly more interesting than expected. And lots of the interesting stuff is in the detail. More >>
Keith Rankin: NZ's 2007 Budget and the Overvalued Dollar - One of the biggest questions that arises from this budget is what impact, if any, will it have on our number one economic problem in 2007, the chronically overvalued exchange rate. The Budget had no impact on the exchange rate on Budget Day (17 May). ... See... More >>
Transtasman Political Letter - Budget Special - Obscure MP quits his party, shakes the Govt, but Clark says it's business as usual... Cullen's eighth budget could be economically brilliant and politically cunning, but will it impress the punters?... Public disquiet on policing and justice systems ... See... More >>
Scoop Satire: Budget Crisis - Lack of Nickname - Concern is mounting in political and media circles that Michael Cullen's latest budget may not receive a proper nickname. This puts media coverage of an important economic issue in jeopardy and raises the terrifying possibility that no part of the Government's spending programme for the next twelve months will be able to be summed up with throwaway catchphrases. More >>
Employers: Poll Says Business backs Budget - The first poll of business decision makers on last week's Budget shows the majority support moves to require employers to match staff contributions to KiwiSaver. They also support the new 10 cents a litre regional fuel tax, and don't favour immediate personal tax cuts, specially if they lift interest rates. However, they don't think it will close the gap between personal incomes in Australia and New Zealand. More >>
Scoop co-editor Selwyn Manning writes: The burden Michael Cullen carries into Budget 07 is the dilemma: how to deliver to Labour's historical constituency at a time when political pragmatism insists Labour must seduce center/centre-right voters. That burden has now caused much debate within the Labour Party, factions are dividing, and its angst is showing in the polls. The New Zealand Labour Party now faces the same conundrum that the Australia Labor Party (ALP) faced under the Beazly and Latham leaderships: how to win back support from those who have benefited from past Labour policies but who now demand centre-right economic policies as an assurance their wealth will continue to grow. More >>
Also Pre-Budget Analysis:
(95bFM Audio): The Wire Cullen's Burden: Paul Deady and Scoop's Selwyn Manning discuss why Michael Cullen is being laden with this Budget 07 burden. Really, should we demand tax cuts? What's it all about then?
Budget Reaction: Poll: Public Verdict Firms On Budget Measures
A rolling nationwide poll shows New Zealanders' verdict on the Budget is firming, with 64% support for company tax cuts and 77% support for KiwiSaver tax credits. These are among the results of a nationally representative online poll being conducted by the independent ShapeNZ panel. The results cover 629 respondents at 5.33am today. Results are weighted by age, gender, personal income and party vote in 2005, and are accurate to within plus or minus 2%. The second interim snapshot shows public opinion firming: 64% agree with the move to cut the company tax rate from 33 to 30% More >>
Business Sector Reaction: Scoop News: Employers Say Cullen Gives With One Hand... - Businesses will not benefit from the 2007 budget as the Government gives with one hand and takes with the other. The Government was praised for the business tax reductions outlined in the budget. However the employer contributions for the KiwiSaver scheme, which is compulsory for employers to offer, will in effect cost companies more than the tax cut received. More >>
Budget: Peters announces major increase in aid - Significant aid increases in Budget 2007 will allow New Zealand to rapidly redress its low level of overseas aid relative to other OECD donors, Foreign Minister Winston Peters said today. See... More >>
Budget 2007 Money To Remodel Cape Reinga - One of New Zealand's premier visitor destinations, Cape Reinga (Te Rerenga Wairua), in the Far North, is to get a $6.5 million government-funded make over as part of Budget 2007. "Located a the very tip of New Zealand where the Pacific Ocean and Tasman Sea meets, Cape Reinga is home to some of New Zealand's rarest plants and animals. More
Racing: Safety fund, wider write-down rules for racing - An annual $1 million fund to improve racecourse facilities, and an extension of the accelerated bloodstock write-down rules are included in Budget 2007, Racing Minister Winston Peters announced today. See... More >>
Tertiary: $129 Million For Universities - Universities are to receive an extra $129 million over the next four years to ensure they can deliver high quality and relevant training that meets our economic and social priorities, Tertiary Education Minister Dr Michael Cullen announced today. "The funding will support the new investing in a plan approach that seeks to ensure universities and other tertiary education organisations are equipped to meet the needs of all stakeholders - students, business, communities and taxpayers," said Dr Cullen. More >>
Environment: Budget funds to combat hill country erosion - Budget 2007 has set aside $10 million over the next four years to fund a Sustainable Land Management (Hill Country Erosion) Framework, Agriculture Minister Jim Anderton announced today. See... More >>