Election year promises

The NZ Herald has counted up the promises made so far this year by both Labour and National, and finds that Labour has already announced $4 billion of spending (some capital) in advance of the budget.

National has only made one major commitment to date – the $1.5 billion for fibre to the home for ultra high speed broadband.

This gives some idea of why National will be in a position to offer larger tax cuts than Labour, without it being more inflationary. The large items for Labour are:

* $750 million in new health spending (includes first year of $160 million announced over weekend for elective services).
* $700 million for Fast Forward Fund investing in food and pastoral sector research.
* $665 million to buy the national rail operations.
* $621 million in total over five years to boost Ministry of Foreign Affairs and Trade.
* $446 million over four years to boost funding for community organisations.
* $251.9 million in total over four years on revamp of Mt Eden Prison.
* $164.2 million over five years for a cervical cancer immunisation programme.
* $150 million a year on educational changes to keep young people in school or training until they are 18.