Latest / Best of Business / Barbara Edmonds: Labour's Finance spokesperson on Labour's plan to return the books to surplus

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Barbara Edmonds: Labour's Finance spokesperson on Labour's plan to return the books to surplus · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from Newstalk ZB. Follow this
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  Speaker 1: and our wide range of podcasts now on iHeartRadio. Now
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  Speaker 1: back to the government's books that have been opened ahead
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  Speaker 1: of the election. As expected, it's painting a rosier picture
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  Speaker 1: than even four months ago in the budget forecasts. Barbara
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  Speaker 1: Edmonds is Labour's finance spokesperson and with us. Hi, Barbara. Hi, Heather.
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  Speaker 1: Thank you very much for your time. Now, will you
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  Speaker 1: commit to surplus in 28-29 just like Nicola did just
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  Speaker 1: half an hour ago?
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  Speaker 2: Well, so in our fiscal strategy, we committed to returning
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  Speaker 2: the books to surplus by 2930 under the OBGAL measure.
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  Speaker 2: So it's quite interesting that she's using the OBGAL measure
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  Speaker 2: given she changed it to OBGAL-X, which shows they won't
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  Speaker 2: get into surplus till 2930. For us, we're going to
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  Speaker 2: finalise our fiscal plan now and release it very shortly.
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  Speaker 2: We'll make adjustments if we need to, but we're still
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  Speaker 2: committed via fiscal strategy to 2930.
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  Speaker 1: So are you committed to surplus at the expense of
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  Speaker 1: pay equity?
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  Speaker 2: No, and we can still pay for pay equity.
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  Speaker 1: So are you saying that even if you have to
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  Speaker 1: fork out quite a lot of money for pay equity,
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  Speaker 1: because it might cost you a lot, you still think
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  Speaker 1: you can get to surplus?
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  Speaker 2: Yes, and it all comes down to choices. And New
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  Speaker 2: Zealanders will be very clear on those choices when our
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  Speaker 2: fiscal plan is released as to how we're going to
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  Speaker 2: pay for pay equity.
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  Speaker 1: So are you going to tell us, you're going to
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  Speaker 1: tell us how you're going to pay for pay equity,
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  Speaker 1: are you?
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  Speaker 2: So we won't show a specific line item for pay equity.
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  Speaker 2: There'll be a sufficient contingency there. And that's because governments
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  Speaker 2: never show the figure for bargaining because it is a negotiation.
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  Speaker 2: And so it won't be a specific line item, but
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  Speaker 2: there'll be a sufficient contingency for pay equity.
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  Speaker 1: So how do you set aside a sufficient contingency that
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  Speaker 1: we can see and that we can see how it's
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  Speaker 1: paid for if we can't see how much it is?
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  Speaker 2: Because that'll be covered with the rest of the fiscal plan.
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  Speaker 2: So you'll see revenue that comes in, you know, obviously
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  Speaker 2: we've got a capital gains tax, but you'll also see
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  Speaker 2: all the different choices that we'll make as part of
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  Speaker 2: the fiscal plan.
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  Speaker 1: Yeah, but we have to see that there is X
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  Speaker 1: amount set aside.
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  Speaker 2: Well, it would be set aside as part of a contingency.
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  Speaker 2: So that'll be very clear.
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  Speaker 1: Oh, I see.
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  Speaker 2: Okay.
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  Speaker 1: So you're going to have a broader contingency for all
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  Speaker 1: the things you might need it for. And within that,
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  Speaker 1: there will be pay equity.
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  Speaker 2: Bingo. That's the one.
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  Speaker 1: How are you going to pay for this though?
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  Speaker 2: Because you can make the choices, you know, and we're
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  Speaker 2: going to set those choices out as part of the
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  Speaker 2: fiscal plan. We've already, you know, for us, the pay
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  Speaker 2: equity is such an important commitment and we're committed to
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  Speaker 2: restoring it. We're committed to restoring the pay equity legislation
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  Speaker 2: within the first hundred days. But what each settlement costs
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  Speaker 2: specifically is decided through a process as part of that legislation.
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  Speaker 2: And it's not by me today via media or not
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  Speaker 2: by any other interest group either.
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  Speaker 1: So, When you say choices, that basically is a euphemism
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  Speaker 1: for you will cut something to pay for this, yes?
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  Speaker 2: Well, it's a reprioritisation, if that's another way you want
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  Speaker 2: to put it, but it'll be clear what our choices are.
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  Speaker 1: How can you possibly cut anything when you have accused
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  Speaker 1: this government of cutting too much? Because the extent of
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  Speaker 1: the cut that is necessary is up to even the PSA,
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  Speaker 1: your own affiliated union, says $ 13 billion. That is enormous.
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  Speaker 1: How are you going to cut something?
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  Speaker 2: Well, for example, a choice that we would not make
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  Speaker 2: is $ 300 million for a tobacco excise tax cut.
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  Speaker 1: Okay.
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  Speaker 2: That means there is $ 300 million more that is.
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  Speaker 1: A choice for something else. So only $ 12. 7 billion more
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  Speaker 1: to find?
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  Speaker 2: Yeah, and it'll be there and people will see there's
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  Speaker 2: a sufficient contingency big enough to cover pay equity.
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  Speaker 1: Okay, all right. When are we going to see this
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  Speaker 1: plan from you?
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  Speaker 2: Very, very soon. Okay. We've just got the pre-food today.
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  Speaker 2: So for us, we will carefully work through it. We've
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  Speaker 2: only had it for a couple of hours. We will
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  Speaker 2: work through that very carefully, make any adjustments that we
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  Speaker 2: need to, and then obviously we will announce our fiscal
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  Speaker 2: plan very shortly.
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  Speaker 1: Should we expect it this week?
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  Speaker 2: You'll expect it very shortly. I'm not going to announce
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  Speaker 2: it today.
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  Speaker 1: Very, very soon feels, hmm, this week, doesn't it? Are
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  Speaker 1: you going to, if Nicola does announce tax cuts, which
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  Speaker 1: it looks increasingly like she is going to, will you
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  Speaker 1: cancel them?
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  Speaker 2: Well, she's still trying to pay for the ones that
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  Speaker 2: she had to borrow for back in 24. So we're
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  Speaker 2: not going to make a commitment around tax cuts. I mean,
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  Speaker 2: they haven't even announced it yet. And if they do,
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  Speaker 2: then how are they going to pay for them? Because
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  Speaker 2: they still have to borrow for the current ones.
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  Speaker 1: Yeah. So are you going to cut them if she
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  Speaker 1: says she's announcing something, are you cutting them?
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  Speaker 2: I will make a decision based on if she makes
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  Speaker 2: that announcement, but not today.
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  Speaker 1: Okay. Thank you. I look forward to hearing what you
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  Speaker 1: guys have got to say. Barbara, appreciate your time. Barbara Edmonds,
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  Speaker 1: Labour Party Finance Spokesperson.