Posts Tagged ‘budget’

1. Government showing deft communication touch

   Published on Friday, February 12th, 2010
   The Government’s handling of the tax changes to be announced in the May budget show a masterly understanding of managing long term communications.

   Delegate the task of putting forward ideas to a third party (a commission) and then immediately reject the most controversial (phew, it’s not going to be as bad as it could be!); talk up some of the remaining unpalatable ideas, and then in the first formal statement of the year reject them too (saved again!).

   Now we have a pretty clear understanding of what will be in the budget some three months in advance, even if we don’t have the detail. By the time the announcements are made in May all the best emotional and rational condemnations from opponents will be out in the public domain, and Government can fine tune its final decisions to ease back on those that will upset us most.

   By the time the changes are finally introduced in October (10 months from raising the issue to their implementation) we will have mentally adjusted, and rather than outrage we will take them in our stride.

   It is good strategy, and the Government’s media managers are demonstrating a deft implementation touch.

   Cast your mind over some of the other contentious issues – mining in conservation reserves; fundamental economic reform to ‘catch up with Australia’ and even the national standards for primary schools have been on the agenda for months.

   When the going started to get tough over national standards, Key & Co showed their ability to up the game aggressively with a ministerial realignment, Key personally entering the confrontation, and outspoken challenges to the teacher’s union and boards of trustees.

   Labour will undoubtedly have the skills to win a few skirmishes as we move into the year, but they are going to need to be at the top of their game to outmanoeuvre National.

2. A budget for feeding the chooks

   Published on Friday, May 29th, 2009
   Reading an NZPA report of the primary sector’s response to the $190 million growth partnership allocation on yesterday’s budget, it was difficult to escape the mental picture of the chooks being feed.

   Each industry segment – and a few who regard themselves as the industry – was enthusiastically grateful for the morsels from Bill’s bucket. And it was clear that each could singularly spend the $190 million itself…and would be bidding to so do.

   This was refreshing for two reasons. First, and all too few townies recognise it, the primary sector is the “sine qua non” of this country, which loosely translated means without it we’re all buggered. And second, so many groups take government handouts for granted, and the primary sector doesn’t.

   In the scheme of total spending, including the $50 million cycle way, $190 million is small beer. Nevertheless, it is consoling that in such tight fiscal times, the government is making some attempt to grow the sector that underpins our economy. As investments go this might be chicken feed, but has surely got to be one of the best.