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Source: ONE News -
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Finance Minister Bill English says that the announced Budget will help New Zealanders through the recession by supporting thousands of jobs.
His words on Thursday come after official figures show that
unemployment is at a
six year low of 5% .
English says unemployment is now forecast to peak at 8% in
September 2010, which will equate to 179,000 people without
jobs.
The worst case scenario is an unemployment rate of 9.5%.
Expectations are that the length of the dole queue will double over
the next two years.
The Social Development Ministry predicted the 41,000 people currently on the dole will increase to 80,000 in 2010 and peak at around 90,000 in 2011.
It is estimated that the government would have to spend $2.5 billion more on benefits over the next four years than Treasury forecast just in December.
"Increased unemployment is one of the harshest effects of the global recession. We cannot reverse that, but we are taking steps to cushion New Zealanders from its sharpest edges," English says.
Included in 'cushioning the effects' are approximately 2000 jobs that will be created by the planned $483.7 million infrastructure kickstart announced by the government in February.
The $323.3 million campaign to insulate and heat up to 180,000 homes will also help re-gain jobs, as will the $50 million national cycleway network.
"Building better roads, more state houses, modern schools and faster broadband will support thousands of new jobs. Many more will be created by insulating homes up and down the country," says English.
English says the initiatives will create work throughout all regions, with benefits flowing through communities by helping keep suppliers and sub-contractors, shopkeepers and sales staff in business.
"Budget 2009 creates new frontline jobs including 600 more police, 246 more probation workers and hundreds of extra training places for doctors and nurses," says English.
Three hundred of the 600 new frontline police jobs will be on Manukau City.
"The Government's top priority for policing has been to increase the number of officers directly delivering services to the public and we're honouring that commitment," Police Minister Judith Collins says.
She says that "there is no better deterrent to crime than police officers out on the beat and on patrol in our communities. We need more police to tackle violence, maintain order and ensure that all New Zealanders can feel safe in their homes, on the streets and in their communities."
English also outlined how the $50 million Re-Start programme announced in December 2009, will support those who lose their jobs.
The scheme will help the estimated 70,000 workers made redundant due to the recession by welfare top ups.
Mixed reaction
Leader Phil Goff says the Budget fails to deliver on a number of the promises made by John Key on the election campaign, including the issue of unemployment.
"The 2009 Budget fails to provide an effective plan to address the growing number of jobs lost and the increasing numbers of New Zealanders worried about losing their livelihoods and their homes," he says.
The Council of Trade Unions is also less than optimistic about the announcement, saying the government could have done more to tackle unemployment.
On Thursday, they were expressed their optimism that the budget would deliver a boost to schemes which will create jobs and develop skills.
However CTU economist Peter Conway says instead of focussing on that, the government's putting funding into infrastructure in the hope everything will work out.
He says more should be done to assist those who are unemployed, given the numbers are rising sharply.
The NZ Public Service Association (PSA) says that the Budget will see even more public sector jobs being axed.
"The Budget continues the government's rolling maul of restructuring and job cuts in the public sector," says PSA national secretary Brenda Pilott.
"We estimate that the government's budget reviews in the public sector have already led to around 1470 jobs being cut."
The PSA says that the the promise of keeping New Zealanders in work does not extend to public sector workers.
"Bill English says we need to lift public sector productivity and then imposes a regime of budget reviews and restructuring on public sector workers whose workload is rising because of job cuts."
"The only people who will benefit from this are high paid
private sector consultants, " says Pilott.
What do you make of Budget 2009? What does it mean for you
and your family? Share your views on the message board
below.
Add a Comment:
Post new commentNoddy samurai said on 2009-05-29 @ 18:57 NZDT: Report abusive post
I think the same as "UP2DATE I think it's about the best National could have done. Nobody including Labour predicted just how bad things would get so overall I'm pretty happy with it
UP2DATE said on 2009-05-28 @ 17:38 NZDT: Report abusive post
I think it's about the best National could have done. Nobody including Labour predicted just how bad things would get so overall I'm pretty happy with it. I had been a Labour supporter up until the last election but the "nanny state" thing had me change. I'm so glad. How disappointing is Phil Goff as leader of the Labour party? Mr Negative without any real alternative...