Source: Govt’s austerity Budget to cause real harm in communities
ORAL QUESTIONS
QUESTIONS TO MINISTERS
Question No. 1—Finance
1. DANA KIRKPATRICK (National—East Coast) to the Minister of Finance: What recent reports has she seen on the Government’s fiscal position?
Hon NICOLA WILLIS (Minister of Finance): There’s been some recent ill-informed commentary suggesting New Zealand’s fiscal position is strong and that our debt is not too high. I disagree. That view counts for New Zealand’s super fund as if it were available for day-to-day costs. It is not. It was confirmed this week that we’ll start contributing to superannuation from 2028. That money is already committed. The reality is our debt is very high by historic standards, we’re spending significant amounts on interest, and our ability to respond to future shocks is limited. Now is the time to rebuild buffers, reduce waste, and get the books back on a sustainable path, and that is exactly what next week’s Budget will do.
Dana Kirkpatrick: What is the scale of New Zealand’s debt problem, and why does it matter?
Hon NICOLA WILLIS: Between 2019 and 2024, Government debt increased by nearly $120 billion, rising from under $58 billion to $175 billion. Net core Crown debt reached 42 percent of GDP last year, the highest since the mid-1990s. The Government is still borrowing around $500 million a week, and that is not sustainable. Last year, we paid $8.9 billion in interest, and that is money that cannot go to health, education, or infrastructure. High debt limits our ability to respond to future shocks, increases our exposure to global risks, and places an unfair tax burden on future generations.
Dana Kirkpatrick: What is the Government doing to get debt under control while protecting essential services?
Hon NICOLA WILLIS: The Government is taking a responsible, balanced approach. We are not reducing essential services; we are re-prioritising existing spending towards high-priority areas. That means reducing low-value or wasteful spending and focusing on core services like health, education, and law and order. We’re also limiting the growth in new spending. The goal is simple: to deliver better results from the money already being spent, not just rely on more borrowing and more tax. By rebuilding fiscal buffers and managing spending carefully, we will put New Zealand in a stronger position for whatever lies ahead.
Dana Kirkpatrick: Has the Minister considered alternative approaches to fiscal and economic management?
Hon NICOLA WILLIS: I have seen some interesting proposals from “Planet La La Land”, including an $88 billion tax grab, and unlike some members opposite, I’m prepared to rule them out.
SPEAKER: I’m on my feet. I’m sure even the Minister doesn’t read documents from “La La Land”. If it’s the end of the question, we’ll go to Laura McClure.
