Budget 2016: An overview

Treasury's latest forecasts show rising surpluses and falling debt as the Government maintains its careful management of public spending, Finance Minister Bill English says.

'This is our eighth Budget and the books are in good shape.


Bill English arrives for his Budget 2016 speech. Photo: Kevin Stent.

'We turned an $18.4 billion deficit in 2011 into a $414 million surplus last year, but a tight rein on spending is still required to start repaying debt.”

Treasury's latest forecasts show the Government is on track to meet its target of reducing net government debt to around 20 per cent of GDP by 2020.

Modest operating balance before gains and losses (OBEGAL) surpluses are expected in 2015/16 and 2016/17, increasing to a forecast $2.5 billion the following year, and $6.7 billion in 2019/20.

'Stronger-than-expected economic growth in 2015 plus Treasury's positive outlook for the economy means the Government's revenue is up considerably across the forecast period compared to the Half Year Update," says Bill.

'The surplus target helped us turn the Government's books around. Now our focus is shifting to debt repayment to ensure New Zealand is well placed to deal with future economic shocks or natural disasters.”

Some spending previously earmarked for Budget 2017 has been brought forward, so net new operating spending in Budget 2016 has increased to $1.6 billion per year. This recognises pressures from higher population growth, and opportunities to invest in core public services and economic initiatives.

As in previous years, Budget 2016 includes reprioritisation of lower-value spending. An additional $480 million per year of new spending has been funded by operating savings.

In addition, the Budget 2017 allowance has also been reduced by a further $400 million per year to help repay debt.

Spending continues to be much smaller than under the previous Government, whose eighth and ninth Budgets, for example, contained an average of $4.3 billion a year of new operating initiatives.

Net capital investment in infrastructure and other public assets is $1.4 billion – less than the $1.7 billion allowance set at the Half Year Update.

However, additional new capital spending will be funded from capital recycling within the Crown's balance sheet. As a result, total new spending on capital in this year's Budget is $2.6 billion.

'These changes reduce Budget allowances for new spending by $1.2 billion over the next five years, helping to further reduce debt while still investing in public services."

'A higher allowance in Budget 2016 means the Government can invest in public services, addressing the long-term drivers of social dysfunction to reduce long-term spending pressures.

'Helping people make lasting improvements to their lives also drives long-term improvements in the Government's books.”

Education cracks $11 billion

Annual education spending is taken above $11 billion for the first time, with additional investment in early childhood education, children with special needs, and new schools and classrooms.

Since 2008, the proportion of children participating in ECE has risen from 93.6 per cent to 96.6 per cent, and the proportion of 18-year olds with NCEA Level 2 has risen from 68 per cent to an estimated 84.4 per cent.

Budget 2016 provides additional education investment of $1.44 billion. This includes $640.5 million of operating funding over the next four years, plus $75.1 million in 2015/16 and $727.3 million in capital. Key spending includes:

  • An extra $396.9 million over the next four years, plus $39.2 million in 2015/16, for ECE. By 2019/20, this will provide funding for a further 14,000 children.
  • $43.2 million over the next four years for schools educating students most at risk of educational under-achievement. The increase will be targeted at schools, regardless of decile, based on how many materially disadvantaged students are on their rolls. While there will not be a general increase in school operations grants this year, schools will continue to receive the existing $1.38 billion in operations grants.
  • $42.1 million over the next four years for students with high and special educational needs.
  • $882.5 million investment in school property with 480 new classrooms, nine new schools, two school expansions and the relocation and rebuilding of three schools and a kura. This consists of $155.2 million of operating over the next four years and $727.3 million of capital.

$16.1 billion investment in health

The Government's investment in health will reach a record $16.1 billion in 2016/17.

Delivering better health services remains this Government's number one funding priority and this year's Budget delivers on this by investing an extra $2.2 billion in health over four years for new initiatives and to meet cost pressures and population growth.

An extra $568 million will be invested in 2016/17 - the biggest increase in seven years, and almost $170 million more than last year.

'DHBs will benefit from an extra $400 million in 2016/17 to invest in services, improve access, and to meet cost pressures and population growth.

This extra funding over the next four years includes:

  • $124 million for Pharmac to provide more access to new medicines.
  • $96 million to provide more elective surgery, a key Government priority.
  • $39.3 million to start the roll-out of a bowel screening programme.
  • $42 million for vulnerable groups.
  • $18 million to expand the Healthy Homes Initiative which aims to reduce preventable diseases in young children.
  • $12 million to increase support for primary care and social services to enable people to access mental health help earlier.
  • $12 million to expand a successful programme that provides intensive alcohol and drug support for pregnant women.

$652.1 million in social investment

Additional support for vulnerable children as well as initiatives in corrections, education and health are promised in a social investment package.

The package provides $641.6 million of operating funding over the next four years and $10.5 million of capital.

Key initiatives in the Social Investment package include:

  • $199.9 million over four years, of which $141.5 million is in contingency, plus $3 million in 2015/16 to implement a system-wide reform of services and support for vulnerable children and young people to ensure they grow up in stable families and communities.
  • $61.2 million, of which $19.8 million is reprioritised, towards extending the Youth Service to 18 and 19-year olds identified as needing more support because they are at-risk of long-term benefit dependency.
  • $50.3 million to reduce barriers to employment, including for people with complex health conditions who would otherwise spend a significant amount of time on benefit.
  • $43 million additional funding for schools, targeted at children most at-risk of not achieving in education.
  • $20 million for prison Out-of-Gate reintegration services to support offenders when they are leaving the controlled routine of a prison and returning to the community.
  • $40 million operating and $10 million capital in contingency to raise data quality and build infrastructure for secure data distribution. This will support government agencies and NGOs to deliver better results from social services using rigorous, evidence-based measurement, evaluation and feedback.
  • $18 million over two years to extend the Warm Up New Zealand programme to insulate rental houses occupied by low-income tenants, particularly those with high health needs.
  • $18 million over four years to expand the Healthy Homes Initiative to reduce preventable illnesses among young children (newborns to 5 year-olds) who are living in cold, damp and unhealthy homes.

$111.5 million to support employment

The Government will invests $111.5 million of operating funding to support more New Zealanders.

The money will be spent over four years to support more New Zealanders, especially young people, to get off benefits and gain sustainable employment.

As one of the Better Public Services targets, the Government is aiming to reduce long-term benefit dependency by 25 per cent and reduce the long-term cost of benefit dependence by $13 billion by 2018.

Budget 2016 includes:

  • $61.2 million, of which $19.8 million is reprioritised, to allow the Youth Service to be extended to 19-year old parents and 18 and 19-year old job seekers who are most at risk of long-term welfare dependency. Currently, a range of 16, 17 and 18-year olds are eligible for the Youth Service, which provides specialist case management and support to help young people into training and education, and prepares them for employment.Nineteen-year-old sole parents have an average lifetime liability to taxpayers of more than $218,000 and on average go on to spend almost 18 years on benefits.
  • $26 million over four years will maintain the increase in targeted case management to 120,000 clients. It will also fund the 3K to Work programme, an extension of the 3K to Christchurch initiative, which supports clients who have a confirmed job offer with a $3,000 payment to help them relocate.
  • $9 million from 2016/17 to 2018/19 to bring together agencies and stakeholders as part of a range of pilot initiatives to improve the life outcomes for people with complex health conditions.
  • $15.3 million over three years from 2016/17 to 2018/19 to support a trial aimed at increasing the employment prospects of released prisoners. Multi-skilled professionals will work with prisoners from pre-release for up to a year to help them prepare, find and stay in employment to help reduce reoffending.

$2.1 billion boost to infrastructure

Education, transport and housing will all receive considerable investment, as will the residents of Christchurch, in a $2.1 billion investment in public infrastructure.

Budget 2016's public infrastructure package delivers on the Government's commitment to build a stronger, more productive economy and deliver better public services.

'Population growth, boosted by Kiwis returning home, is increasing demand for public services, so we are investing in infrastructure now to ensure all New Zealanders can continue having access to high quality public services,” says Finance Minister Bill English.

A $882.5 million investment in school infrastructure will deliver 480 new classrooms, nine new schools, two school expansions as well as the relocation and rebuilding of three schools and a Kura.

This includes $168.5 million for the Christchurch schools rebuild programme, which is now in its third year and has completed six schools, with a further eight under construction.

The infrastructure package also includes funding for the Government's previously announced Accelerated Regional Roading Programme.

'Regional communities will be better connected with $115 million in Budget 2016 for roading projects in Gisborne, Marlborough and Taranaki,” says Bill.

The package includes:

  • $190.2 million for KiwiRail as part of the two-year package announced last year. The Government has a strong expectation that KiwiRail will continue to improve its performance to reduce the level of Crown support required in future.
  • $37 million for tourism infrastructure. This includes $25 million to upgrade the New Zealand Cycle Trail, Nga Haerenga, and ensure it continues to offer a world-class visitor experience. A further $12 million is being provided to help communities with smaller-scale infrastructure projects, such as restrooms and carparks.
  • $857 million for Inland Revenue to modernise the tax administration system and make it easier for New Zealanders to meet their tax obligations.
  • $19.5 million for the construction of a high-security national biocontainment laboratory to help prevent the spread of high-risk diseases.

In addition, a further $599.6 million has been set aside in contingency for additional infrastructure investment.

'These major infrastructure projects will help deliver better public services and support solid economic growth into the 2020s.”


UPDATED 2.27PM: Budget 2016 will see record investment in health and education and more support for businesses to create jobs on the back of a growing economy, says Prime Minister John Key.

The eighth Budget shows rising surpluses and falling debt, with the economy forecast to grow at 2.8 per cent over the next five years on average through to 2020.

'This means more jobs and higher incomes and more capacity for the Government to support New Zealanders through better public services and a more confident and prosperous country.

'As our economy continues to grow we now have choices we simply did not have eight years ago. Budget 2016, embraces those choices by investing in New Zealand's future.”

John says the focus of Budget 2016 remains on achieving better results for Kiwis and their families from almost $80 billion in existing spending, and ensuring new spending is directed where it will make a real difference.

Investment in Budget 2016 includes:

  • $761 million for Innovative New Zealand, a package of science, skills and regional development initiatives to help grow and diversify the economy.
  • A $2.1 billion public infrastructure package focused on transport, schools, and the infrastructure needed to deliver a modern, flexible tax system.
  • A $652.1 million Social Investment package that supports vulnerable New Zealanders.
  • An additional $2.2 billion for the health sector over four years to ensure New Zealanders continue to have access to high-quality healthcare.

He says Kiwi businesses are creating thousands of jobs and the Government wants to ensure that innovation and effort is supported and the benefits are spread around the country.

'That's why we have focused on providing New Zealanders with the skills they need in a modern economy, boosting regional economies and making it even easier to do business through initiatives such as improvements to the way businesses pay tax.

'A strong economy allows us to invest more in priority public services such as increased access to next-generation medicines, more elective surgeries and schools, and vital social services such as emergency housing, ensuring all New Zealanders benefit from our country's success.

'This Budget builds on that success, focuses on supporting Kiwis, and helps ensure we are prepared for the future.

'Our challenge over the next few years is to stay on course with a policy programme that's working for all New Zealanders, and this National-led Government remains committed to doing that,” John says.

$258 million for social housing

Budget 2016 promises to spend $258m over four years to boost social housing.

The additional investment in social housing will provide at least 750 more places for individuals and families on the social housing register with the most pressing housing needs.

Over four years, the package includes:

  • $200 million for more social housing places in Auckland, costs related to redeveloping social houses in Tamaki and for increased Income Related Rent Subsidy payments because of higher rents.
  • $41.1 million for emergency housing and a new Special Needs Grant.
  • $7.5 million in new operating funding to manage social housing transfers to community housing providers.
  • $3.7 million in 2016/17 for the Ministry of Social Development's housing unit and the Auckland social housing team.

$208 million investment boost for Justice

A $208.4 million in additional funding over the next four years has been announced as part of Budget 2016 – the largest increase to Justice and Courts in almost a decade, says Justice and Courts Minister Amy Adams.

'This investment underpins the Government's commitment to delivering core justice services and keeping New Zealanders safe. It will better support access to justice and strengthen efficiencies across the system.

'Justice sector agencies remain focused on crime-prevention, rehabilitation and reducing re-offending. Budget 2016 continues to invest in services to enhance our criminal justice system.”

The extra funding includes:

*$13.3 million for the Public Defence Service to ensure New Zealanders facing criminal charges receive high-quality legal representation.

*$16.2 million so restorative justice providers can meet growing demand for their services.

*$14.4 million for the Ministry of Justice to deliver more effective services.

*$55.9 million over 2016/17 and 2017/18 for the operation of the Christchurch Justice and Emergency Services Precinct.

*$76 million over the next four years plus $20 million in 2015/16 to enhance access to legal aid and community law centres.

*A further $24.6 million has also been allocated over two years to deliver the 2017 general election.

In total the justice sector receives $837 million over the next four years, plus $56 million in 2015/16.

$355.6 million funding boost for Corrections

New operating funding of $355.6 million over the next four years will ensure that Corrections can cope with a rising prison population, maintain public safety and reduce reoffending, says Corrections Minister Judith Collins.

Despite progress in reducing crime and improving public safety, the number of prisoners has increased faster than expected. The prison population exceeded 9,400 in April and is forecast to reach 9,800 by December this year.

The Budget funding includes $290.6 million for Corrections to address the growth in the prison population. That investment will enable Corrections to meet the rising costs of running prisons – including existing custodial services and the ongoing funding for additional places in the prison network.

Budget 2016 also provides additional funding for services to protect the public and reduce reoffending. This includes:

  • $20 million for the continuation of Out-of-Gate reintegration services. This supports offenders at a particularly vulnerable time when they leave the controlled routine of prison and return to the community.
  • $12 million to manage offenders returning from overseas. The Government is now managing more returning offenders than before – this funding will be used to manage them effectively.
  • $8.8 million to continue the 24-hour GPS electronic monitoring for the highest-risk offenders and improve the electric monitoring assurance framework.

'Sorting out the basics such as accommodation, employment, education and training means offenders are less likely to commit further crime,” says Judith.

'The safety of the public is a key government priority. Having proper support and oversight in the community goes a long way towards stopping people reoffending.

'This Government is focused on keeping the public safe and reducing crime. Budget 2016 addresses volume pressures as well as targeting investment in services shown to reduce reoffending.”

In total the justice sector receives $837 million over the next four years, plus $56 million in 2015/16.

$299.2 million in additional funding for police

Budget 2016 demonstrates the Government's continued commitment to preventing and reducing crime, with Police receiving an extra $299.2 million primarily for pay increases, says Police Minister Judith Collins.

'Since June 2011 the crime rate has fallen by 16 per cent, resulting in over 53,000 fewer crimes. Police are continuing to deliver good outcomes for New Zealanders,” says Judith.

'This additional funding will enable Police to further improve the services it provides, with a continued focus on preventing crime, reducing victimisation and keeping communities safe.”

The operating funding over four years, which includes $49.2 million from a Budget 2015 contingency, will fund:

  • $279.9 million for Police pay increases.

$96 million for legal aid and community law centres

Budget 2016 will invest an additional $96 million of operating funding over this year and the next four years to make it easier for low-income New Zealanders to access advice from legal aid lawyers and community law centres, Associate Justice Minister Simon Bridges says.

Key parts of the package are:

  • $17.2 million to increase eligibility for civil and family legal aid.
  • $4.3 million for community law centres.
  • $54.5 million, and $20 million in 2015/16, for the provision of legal aid.

'Legal representation can be expensive, and legal aid supports people without the financial means to pay for a lawyer's assistance,” says Simon.

'Civil and family legal aid helps people apply for protection orders, agree on parenting arrangements, settle employment disputes, and access many other types of court proceedings. Increasing eligibility will help 2,700 additional New Zealanders each year by 2018/19.”

Budget 2016 will also provide greater certainty for community law centres to continue to give free legal advice.

'Community law centres play an important role in ensuring that all New Zealanders have access to free legal services,” he says.

'Budget 2016 ensures community law centres will continue to receive around $11 million in annual support – a total top-up of around $4.3 million over the next four years. This will allow them to plan for the future with certainty.”

In addition to the funding in Budget 2016, $14.7 million over four years was announced earlier this year to allow the Legal Services Commissioner to revise criminal legal aid fee schedules, to help ensure efficiency and sustainability in the legal aid system.

In total the justice sector receives $837 million over the next four years, plus $56 million in 2015/16.

  • $8.2 million for the child protection offenders register development and operating costs.
  • $6.4 million to ensure Police comply with the provisions of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
  • $4.7 million to cover the first two years of the new operating costs of Christchurch's Justice and Emergency Services Precinct.

The funding for pay increases is on top of $30.6 million provided in February 2016.

'This additional funding will ensure the Police can continue their focus on preventing crime,” says Judith.

In total the justice sector receives $837 million over the next four years, plus $56 million in 2015/16.

Extra $19.7 million for Crown prosecutions

Budget 2016 provides $19.7 million of new operating funding for Crown prosecutions over the next four years.

'This investment will ensure serious offenders continue to be held to account through New Zealand's high-quality Crown prosecution services,”says Attorney-General Christopher Finlayson QC.

Crown prosecutions are managed by Crown Law through a network of 17 Crown Solicitors who are responsible for the conduct of prosecutions on behalf of the Crown. Each Crown Solicitor is a partner in a private law firm.

'Crown prosecution services form a vital part of New Zealand's justice system.

'Budget 2016 demonstrates the Government's commitment to effective criminal prosecutions and will ensure the sustainability of these high-quality services into the future.”

In total the justice sector receives $837 million over the next four years, plus $56 million in 2015/16.

Unending tobacco tax rises

Tobacco tax will rise 10 per cent per annum for the next four years, say Associate Health Minister Peseta Sam Lotu-Iiga and Māori Party Co-leader Marama Fox.

'Raising the price of tobacco is the single most powerful tool to reduce smoking. All smokers will face the price rises. The more they smoke, the more they pay. The more they pay, the greater the incentive to quit,” Mr Lotu-Iiga says.

Previous tobacco tax increases reduced annual tobacco consumption by about a quarter and prompted thousands of smokers to quit.

It's estimated between 4500 and 5000 people die from smoking related illnesses each year – more than 12 people every day, says Peseta Sam.

'Increasing tax helps to reduce the incredibly serious harm caused by smoking.”

About 15 per cent of adult New Zealanders – or 550,000 people – smoke daily. That increases to 35 per cent for Māori and 22.4 per cent for Pacific peoples.

The excise increase is part of a comprehensive suite of measures intended to help make New Zealand a smoke free nation by 2025.

The price of a standard pack of 20 cigarettes will likely increase from around $20 now to around $30 in 2020. The changes are expected to generate an extra $425 million in tax revenue over the next four years.

$36 millioon for warmer, healthier homes

The Government is investing $36 million to ensure more New Zealand families live in warmer, drier and healthier homes.

These initiatives are part of the Social Investment package. The Government want to give vulnerable children the best start in life and reduce exposure to preventable diseases such as respiratory conditions and rheumatic fever.

The investment includes:

  • $18 million of operating funding over two years to extend the Warm Up New Zealand programme to insulate rental houses occupied by low-income tenants, particularly those with high health needs.
  • $18 million over four years to expand the Healthy Homes Initiative to reduce preventable illnesses among young children (newborns to 5-year olds) who are living in cold, damp and unhealthy homes.

SuperGold card survives

The threatened pensioners SuperGold off peak transport card receives a $40.9 million operating funding in Budget 2016.

The Government supports increasing the mobility of SuperGold cardholders, says Transport Minister Simon Bridges.

The funding to provides certainty for more than 670,000 cardholders who made 12.6 million trips last year.

The SuperGold funding is among $357.9m invested in key transport projects including up to $115 million of new capital funding for previously announced roading projects in Gisborne, Marlborough and Taranaki, continuing the Government's Accelerated Regional Roading Programme.

Kiwirail receives $190.2 million of new capital funding for KiwiRail for the operation of the national freight network.

'The Government's Accelerated Regional Roading Programme is one of our core transport priorities. This $115 million in Budget 2016 is the second tranche of a $212 million package announced in 2014,” says Transport Minister Simon Bridges.

$857 million for IRD

The government is investing $857 million in improving the tax collecting system over the next four years.

Budget 2016 invests $503 million of new operating funding over the next four years and $354 million of new capital funding for Inland Revenue's new tax administration system, says Revenue Minister Michael Woodhouse says.

'It's important that our tax system keeps pace with changes in New Zealanders' expectations and changing business models,” says Michael.

The benefits will be delivered by increased use of digital technology, through the development of Inland Revenue's new IT system, says Michael.

Inland Revenue's current system is 25 years old. The investment will provide a modern, simplified tax administration system that meets New Zealanders' needs, reduces compliance costs for businesses, and helps people get their obligations and entitlements right first time, says Michael.

The programme is expected to generate $284 million of savings for Inland Revenue and $280 million in additional tax revenue from greater compliance. These savings will be used to provide further funding for the programme, on top of the $857 million provided in Budget 2016. This funding is in addition to the $187 million SME-friendly tax package announced in April.

New Maori Land agency

The Government's investing $14.2 million in a new Maori Land Service which will provide vital administrative services to Maori landowners. It'll also take over some of the functions of the Māori Land Court.

The investment includes $8 million of operating funding over two years and $6.2 million of capital.

Maori Development Minister Te Ururoa Flavell says it's about providing land owners with a one-stop shop where they can get information about their land and practical support to make informed decisions.

There'll be more money for frontline support services for Maori land and management by Te Tumu Paeroa, the Maori Trustee which helps Maori landowners build their assets for future generations.

It will get $3.7 million of operating funding over the next four years to assist Māori landowners to strengthen their governance. This will help to improve land use and asset management and to increase financial returns.

Te Ururoa says the additional funding will help landowners shift from passive leasing to more active land use particularly in Northland, East Coast, Bay of Plenty and Manawatu/Whanganui.

Te Tumu has a critical role in delivering services to 92,000 land owners and 1,986 trusts.

Government backing Christchurch regeneration

The Government will spend $17 billion in regeneration for Christchurch says the Minister supporting Greater Christchurch Regeneration Gerry Brownlee.

Since the earthquakes in 2010 and 2011, the Government has backed greater Christchurch and its financial support has helped people make huge strides in their recovery.

'The forecast financial commitment now stands at a total of more than $17 billion, around $700 million more than signalled in the last Budget. The Government is supporting initiatives for peoples' wellbeing, the repair of homes, rebuilding roads and anchor projects that will revitalise the central city.

'Otakaro Limited, a new Crown-owned company, is continuing the development of central city anchor projects and precincts.

'A new unit of the Department of the Prime Minister and Cabinet, the Greater Christchurch Group, is co-ordinating the Government's role in the regeneration, providing advice to Ministers and monitoring and reporting on progress in greater Christchurch.”

Defence Force receive $300.9 million

The Government will fund the Defence Force $300.9 million over the next four years.

Defence Minister Gerry Brownlee says the funding follows the 2013 defence mid-point rebalancing review, which determined indicative funding needs of the Defence Force to 2030.

'The Review continues to be implemented, and I'm pleased that this is the third year that new funding has been made available.

'The Government's long-term commitment to having a modern and responsive Defence Force is also reflected in the 2016 Defence White Paper, which will be released shortly.

'The White Paper confirms investment in major capabilities and infrastructure to deliver Defence policy out to 2030.Gerry says the funding announced today allows the Defence Force to concurrently undertake domestic, regional and international security tasks by giving it greater options in responding to changes in the security environment.

Gerry believes it will provide for increases in a range of operational areas, such as personnel and costs associated with new and improved capabilities. These increases are needed for the Defence Force in order to carry out the tasks required of it by the Government.

'It will also enable the continued introduction into service of new and upgraded capabilities and the regeneration of Defence properties.”

The new funding is made of up of $31.8 million in 2016/17 and $89.7 million in each of the following three years.

$347.8 million for care and protection of young people

The Government will invest $347.8 million of operating funding through to the next four years for the care and protection of vulnerable children and young people.

By March next year, the newly announced major overhaul of care and protection will deliver a new child-centred approach. With a single point of accountability focused on prevention, intensive intervention, care support services, transition support and preventing youth offending and reoffending.

The new funding includes:

- $144.9 million over four years to meet cost pressures and increased demand for services from more children and young people in care.

- $199.9 million over four years, of which $141.5 million is in contingency, plus $3 million in 2015/16 for the transformation programme and for the new child-centred operating model.

$16 million to tackle wilding conifers

The Government will provide $16 million of new operating funding over four years to tackle wilding conifers.

Primary industries Minister Nathan Guy says the trees are a major threat to ecosystems, land and farms.

The new funding will be used to control wilding conifers in the highest priority areas including Molesworth Station, headwaters of Southern Alps lakes and rivers, the Wakatipu Basin, and the North Island's central plateau.

It will also support greater collaboration between the Crown, regional councils, community groups, land owners, and foresters.

The new funding provided in Budget 2016 builds on the estimated $11 million spent on the management of wilding conifers each year.

$69.8 million towards eliminating bovine TB

The government have announced $69.8 million will fund helping to eradicate bovine tuberculosis.

Primary Industries Minister Nathan Guy says great progress has been made in tackling the destructive disease.

The new funding will help achieve goals of eradicating bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055.

Funding the Arts

Three major arts organisations will share a funding boost of $11.6 million.

The New Zealand Symphony Orchestra, Royal New Zealand Ballet and Te Matatini Kapa Haka Aotearoa will distribute the $11.6 million of new operating funding over the next four years. It's a permanent increase of $2.9 million a year for the arts.

The RNZB annual grant will increase by 23 per cent to $5.4 million from 2016/17, enabling it to increase its touring programme.

NZSO funding will increase from $13.4 million to $14.6 million from 2016/17, to allow it to perform more concerts and undertake more regional tours.

Funding for Te Matatini, the national kapa haka organisation, will rise from $1.2 million per year to $1.9 million from 2016/17 – this is a 56 per cent increase.

This will allow Te Matatini to increase community involvement in traditional Māoridance and promote its health and social benefits, as well as taking the best of kapa haka to the world as it did at the recent Edinburgh Military Tattoo.

Wider commitment to te reo Maori

The Government has budgeted $34.6 million to support the revitalisation of the Maori language.

'The new funding will provide all New Zealanders with access to more te reo Maori - a great advance for the Maori language,” says Maori Development Minister Te Ururoa Flavell.

'The funding will enable whanau, hapu and iwi to play a greater leadership role in the design and planning of initiatives that make a real difference to the revitalisation of the Maori language.”

The funding includes $12 million to support the establishment and operations of Te Matawai, the new Crown entity to be set up under Te Ture mo Te Reo Māori 2016.

A further $12 million is also set aside for Te Reo Maori Whanau and Community planning. This will allow whanau, hapu and iwi to develop Māori language strategies within their communities.

Maori Television will receive $10.6 million to reach a wider audience via high-definition broadcasting on multiple platforms.

$40 million for Whanau Ora

The Government‘s pumping another $40 million into Whanau Ora – the organisation aimed at empowering whanau to achieve better health, education, housing, skills development and economic outcomes.

The money over the next four years will allow Whanau Ora to substantially increase the number of whanau it can support, says Māori Development and Whānau Ora Minister Te Ururoa Flavell.

'It means help for up to 2500 more whānau and families on top of the more than 5000 that are already being supported.”

Whānau Ora has had great success helping families in crucial areas such as managing health and disability issues, improving financial literacy skills, and reducing household debt.

Four million dollars over the next four years will provide microfinance for small and medium enterprises.

'It builds on trials in South and West Auckland to strengthen the financial capability of whānau and address the lack of access to capital for small and medium enterprises,

'It'll ensure whānau won't be trapped by huge interest rates and massive debt. It is also an opportunity to target programmes geared towards increasing Māori entrepreneurship and innovation.”

The Government's also spending $5 million to improve Maori electoral participation. Persistent low enrolments and turn-outs means Māori aren't exercising their political influence to its full extent."

Upwards of 250,000 people aren't on either of the electoral rolls and the majority of these are thought to be Māori.

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3 comments

tobacco tax

Posted on 26-05-2016 18:32 | By dave4u

Every govt that increases tax on fags and booze is out..most people have agreed with fag tax ..even smokers to stop the young taking it up is a good thing ..BUT now they have gone overboard because as a smoker on the super and smoked since 18.. who suffers ..grandkids, my food, my heating,and so to my health... not because of smoking ..but what I cant afford NOW the fags are going up beyond belief...fags only kill the smoker ...booze kills the innocent ..tax that ..thats a weak govt for you..oh and hey the smokers that die make room for more imagrants to take over the country and ..wait for it Suicide bomb the malls and supermarkets...some of us oldies arnt in a rest home yet and have a brain..pity John boy has lost his. Winstone you are looking good for next year every day, ..National get stuffed


Mickey Mouse

Posted on 27-05-2016 08:59 | By Captain Sensible

$40 million for whanau ora, but less for bowel cancer screening. Did Mickey Mouse do this budget


Good on ya Bill

Posted on 27-05-2016 09:16 | By Minx

Good budget, you are the man Bill, sensible allocation of funds. The grizzlers will only grizzle because there was nothing in it for them in the form of handouts.Well done National, the majority agreed at election


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