Thursday, May 18, 2006

Budget 06

The biggest little shallow secret in the Dr Cullen's 7th Budget is the $1.3 billion boost in roading funing to plug the gap left in transit's ten-year plan, paid in part through a one-off $800m divided from Meridian Energy. The remainder will be picked up though a $400m slice of a billion dollar commitment by the government of infrstructure bonds (full budget speech). A special announcement of more dosh for the Waikato is due tommorow. Transit will be issuing key deliverables on the extra spending shortly.

The Budget was otherwise on mesage and unsupprising. On message also was Don Brash, in contrast to his pitiful reply to the 05 budget. In his response, Dr Brash called the Budget the 'Bondi Budget', banging on and on about tax cuts, not unlike some in the media, and failing to address anything of substance in the budget. Which in iteself isn't bad politics. The fact he stayed on message, keeping to a well vetted speech no doubt, really outlines National's key policy focus for the next 2 years: tax cuts, tax cuts and tax cuts. This is what'll run in the news tonight, and the papers tommorow. But Brash failed to capitalise on Cullen's inattention to waiting lists - not mentioned at all in his speech. He read his pre-prepared rebuttal on the issue, but could have sustained much more damage to the Government with a more decisive attack on this issue. Most Labour supporters won't really care about what Brash has to say about tax cuts - they'll see it for idealogical posturing - but they will care about hospital waiting lists. While National can be fingered for Ruthanasing the health system, Labour isn't doing so well in the fixing on it. I'm picking this to be the achilles heel for Labour for the rest of the term, it's up to both parties to muster their ranks for a battle before the other makes a fatal blow.

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