Outline of infrastructure package defended

Published: 11:46AM Monday February 09, 2009 Source: NZPA / ONE News

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Prime Minister John Key is defending the government's latest recession package, before it is even announced.

Key said the infrastructure package, covering schools, housing and roading, would be in the $500 million range and was likely to be announced on Tuesday or Wednesday.

He says the package covers projects due to start this year and warned people not to look at it in totality.

"It needs to be set against the context of investment in infrastructure. This is not everything we're doing, we've got a number of other things planned. This is simply just some projects that are consented and ready to go, [that] will get people in work straight away," he told TV ONE's Breakfast programme.

Labour leader Phil Goff says reinstating the home insulation programme should be the first step of the infrastructure package.

"John Key needs to admit that he made a mistake and do a U-turn because National's decision to ditch Labour's $1 billion home retrofitting fund was a major error," he says.

Goff says the programme would make homes "more comfortable, safer and healthier" and would create power bill savings.

Last Wednesday, Key outlined a "Jobs and Growth Plan" intended to make life easier for small to medium sized businesses as the world-wide recession sweeps over New Zealand.

The package focused on tax changes worth $480 million over four years increasing businesses' short term cash flow and reducing compliance measures.

Labour said the small steps were welcome, but were "underwhelming".  Businesses also welcomed the moves saying they would help through the tough times, but there were still calls for more.

Cabinet is expected to  sign off on a small rise to the minimum wage, which currently stands at $12 an hour, in its meeting on Monday.

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