May 24, 2010

Media Release

Poll gives Government solid support for Budget’s capital investment plans

The Government has solid support for its plans for major new capital investment plans, specially for ultra-fast broadband and KiwiRail.

69% of New Zealanders back the extra $200 million in new spending for a nationwide ultra-fast broadband network roll out during the next four years, according to a nationwide ShapeNZ 2010 Budget poll.

Only 9% oppose the extra funding for the broadband project, while 18% are neutral and 4% don’t know.

Commissioned by the New Zealand Business Council for Sustainable Development, the survey was conducted between 5.15pm May 20 and 8am Sunday May 23, and covers 2097 New Zealanders. Weighted to represent the population, the survey has a maximum margin of error of ± 2.1%.

62% support the decision to invest $250 million for KiwiRail service improvements. 12% oppose, 20% are neutral and 7% don’t know.

There is 41% support for spending an extra $500 million to electrify Auckland rail (23% oppose, 27% are neutral and 8% don’t know).

The Government also has 42% support for delivering extra prison capacity using public private partnerships, which it says it will do only if those types of projects have a materially lower cost over the life of the service. Some 28% oppose, 18% are neutral and 13% don’t know.

Among the new capital spending items spread over the next four years:

• 77% support $190 million for new schools, school property improvement and faster broadband services for schools (4% oppose, 14% neutral, 5% don’t know)

• 63% support spending an extra $82 million for information technology to improve border control and archiving.(4% oppose, 26% are neutral)

Among extra funding for programmes:

• 81% support the extra $2.1 billion for health, including $1.4 billion for district health boards to help them cope with price rises and changes in the population make up. 5% oppose

• 75% back the extra $1.6 billion for education (6% oppose)

• 63% support an extra $321 million for new science and research and development initiatives (6% oppose)

• 60% support new priorities for tertiary education, creating an extra 765 places (7% oppose).

Part One of this results report, covering views on the main tax reforms, raising revenue by putting GST up to 15% and denying depreciation on buildings, and the Budget’s likely impact on investment decisions and voting is available at www.nzbcsd.org.nz

Results represent the views of survey respondents, not the Business Council’s policy views. They cover initial reactions to the Budget and views may mature as more information becomes available.

Ends

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