Source: EMA
The EMA says the emphasis on Trades Training and channelling high school students into skills and trades, as well as university, is a positive from today’s Budget announcement.
“The confirmed re-prioritisation of funding from the previous Fees Free scheme into trades training could go some way to filling future gaps in the trades, and enhance the work readiness of those leaving our schools and heading into skills and trades-oriented careers,” say EMA Head of Advocacy Alan McDonald.
“The confirmation of an additional 10,000 places in trade academies and around eight new trade focussed courses for high school students is a good use of that Fees Free funding.
“The new Industry Skills Boards (ISBs) will develop those courses, backed by funding of $15 million. Hopefully, the additional funding of $90 million for the New Zealand Qualifications Authority (NZQA) will also see the Authority approve those courses more quickly than its current approval times, and get those courses underway.”
McDonald says the Budget did a bit with not very much, with confirmation of funding for several larger infrastructure projects, while the revised forecasts were not as bad as many expected.
“Getting back to surplus a year earlier than previously forecast (28/29) was a surprise, no doubt helped by the additional taxes and some of the savings identified in recent announcements about the public service.
“GDP growth for this year is down to 1.2% from 1.7%, and will still be challenging, especially reaching the 3.2% forecast in 2028. A lot is going to have to stabilise to make some of these predictions a reality. Unemployment also has a new peak at 5.5% in June this year, up another 0.1% (several thousand jobs) before dropping back.”
McDonald said the other main positive from the Budget was the committed funding for infrastructure.
“Firm commitments to Whangarei’s hospital upgrade and Dunedin’s outpatient clinic, plus buying the land for the new South Auckland hospital, are a boost for the health sector, in addition to land acquisition for 10 new schools.
“Then you get the hard infrastructure like the Cambridge to Piarere road extension in the Waikato, and more than a billion dollars for rail. Road projects around Tauranga and the Waikato improve access to our ports for exporters, while changes further north also bring Northport more into the mix. It’s not clear where the spend on rail upgrades will go, but improving rail connectivity for both Auckland (a fourth main line) and Northport should be among the priorities.
“There wasn’t much to spend, but some of those priorities look to the longer-term.”