-
Finance Minister Bill English - Source: ONE News
Radical recommendations from Treasury, including reintroducing interest on student loans, have been rejected by Finance Minister Bill English.
A briefing from Treasury to Finance Minister Bill English was made public today.
It says to build greater economic resilience, a "wide and ambitious" programme of reform is needed.
Treasury says the Government should consider reducing personal and company tax rates, raising the retirement age, targeting early childcare funding to low income households and reforms in resource management, the minimum wage, the housing supply and local government.
A spokesman for Finance Minister Bill English says Treasury's views on all these issues are well known but have been rejected.
He says the Government is focused on building faster economic growth, but wants to take New Zealanders with it and believes it has struck the right balance.
But Labour says the document highlights a "huge vacuum" in National's economic growth plans.
"New Zealand needs a clear and integrated strategy for lifting productivity and growth. Clearly the Government hasn't been listening - to anyone," said Labour's Economic Development spokesperson David Cunliffe.
"Hard working Kiwi business people don't need more cuts. They need customers with money to spend and a plan for a better future. National has no plan for this, Labour does."
Increasing class sizes
The document also recommends increasing class sizes and targeting tertiary funding to younger students and higher level qualifications.
It says by increasing student to teacher ratios and "consolidating" the school network, funding can be freed up to improve teaching quality.
Labour says the Government has been caught out, and that plans to increase class sizes were withheld from an Education Ministry briefing.
"Sources have told me that the Ministry's briefing actually said: 'Managing cost pressures in coming years will require changes to system settings and formulas which drive the resourcing of schools, including consideration of teacher-to-student ratios,'" said Labour Associate Education spokesperson Chris Hipkins.
"This sentence has been withheld in the briefing released today.
"Hekia Parata obviously didn't want New Zealanders to know of
the National-led Government's plans to make class sizes bigger, and
was counting on the Treasury removing this advice."
The Post Primary Teachers' Association says increasing class sizes
will put more pressure on teachers, hamper children's education and
result in impersonal tuition.
PPTA president Robin Duff says there are around 27 students in a class and in the worst cases, that has blown out to 40.
100% pure brand at risk
The Treasury document also recommends reducing border barriers and changing new organisms regulations.
Green Party Biosecurity spokesperson Steffan Browning says such
changes would undermine the long-term strength of New Zealand's
export economy.
"Treasury's advice is incredibly short-sighted and risks the
long-term viability of our agriculturally-based export economy,"
said Browning.
"Allowing the greater flow of genetically modified plants and animals will undermine our '100% Pure' brand and the huge competitive advantage this brand has in the eyes of the world's consumers.
Browning says the '100% pure' brand is worth $20 billion to New Zealand.
"Treasury should stick to what it does best - overestimating future economic growth - and not meddle with the country's biosecurity and GE protections," said Browning.
- With Newstalk ZB
