Wellington, June 26, 2020
A strong health approach was our best economic response to the Covid-19 pandemic.
However, we have also invested heavily in a direct economic response to the pandemic.
This response has softened the blow of the effects Covid-19 had on the New Zealand economy and has saved many job losses as well as kept many small businesses going.
Still, we have many more challenges ahead of us to overcome.
We are making major investments to grow our economy and create tens of thousands of new jobs. We recognised that this is not a time for business as usual and we are driving a relentless focus on jobs, on training, on education and the combined role of all this can play to support our environment, our people and rebuild New Zealand.
With the dedication and hard work of our Team of Five Million, we have been successful in stamping out Covid-19. Our economy is opening up again and our immediate focus is on jobs, jobs, jobs.
We want to protect existing jobs, create new ones and provide support for employers to retain their workers.
Financial help to all
Our Government took decisive action when Covid-19 hit, by swiftly implementing the Wage Subsidy Scheme, which has provided over $12 billion in support to businesses up and down the country.
Then, we extended the subsidy to businesses hardest hit and also helped businesses with our business support package which included the Small Business Cash Flow Loan, Business Finance Guarantee Scheme, business cash flow and tax changes as well as insolvency relief.
We are creating jobs via major investments through the delivery of 8000 new public houses, extending the Food In Schools Programme across the country and about 11,000 environmental jobs in the regions by creating new opportunities while we clean up our environment.
Major investments
We are also investing in skills and training, particularly for young people by making targeted trades training and apprenticeships free. This will allow us to have the skills we need to rebuild the country post Covid-19 and also make sure that people have the ability to re-train and build a new career if they have lost their jobs.
When Covid-19 hit New Zealand, our economy was strong and growing.
Government debt was at 19% of the GDP, which was lower than in most OECD countries. This positioned us well for an economic shock we faced and enabled us to make these investments.
The largest investment in infrastructure to which we committed, the New Zealand Upgrade, to prepare our country for the future is now more important than ever now.
These infrastructure projects will create new jobs across the country and leave a positive legacy that will support our economy into the future.
Our investments are in upgrading of roads and rail, schools and hospitals, upgrading child, maternity and mental health facilities, and green investment such as replacing coal heaters with clean energy in schools and hospitals.
Contributions to Superannuation Fund
We have also restarted contributions to the Superannuation fund, backed new start-ups with the Venture Capital Fund and invested in our regions through the Provincial Growth Fund.
We need to also fix the essential public services that have fallen into disrepair while the previous governments prioritised tax cuts.
While some at the top did well under National, our schools became overcrowded, children were learning in hallways and school halls and hospitals were falling to pieces.
Over the previous nine years, funding changes did not keep pace with the combined effects of inflation and population growth. The health system faced massive cuts amounting to over $2 billion and the housing crisis saw offshore speculators buying our houses while the house prices increased 10% every year and 6,000 state houses were sold.
As we recover and build from the shock of Covid-19, we have a focus not just on the short-term challenge, but also the long-term investments needed to support the prosperity and wellbeing of all New Zealanders.
With the leadership of Jacinda Ardern, Labour in government led a decisive health response that stamped out Covid-19 and now gives us the best possible opportunity to create a truly sustainable and inclusive recovery and rebuild.
Michael Wood is Member of Parliament elected from Mt Roskill in Auckland. He is the Chief Government Whip.
