Prime Minister Christopher Luxon
Photo: RNZ / Marika Khabazi
Prime Minister Christopher Luxon says he’s “quite relaxed” about projections of an $8.5 billion dollar hole in future funding.
Budget documents show cost pressures of $27.9 billion over the forecast period, with just $19.7 billion of reprioritisation options.
The figures leave an “unfunded pressures” gap of $8.5b.
Speaking at Mainfreight in Papamoa on Friday morning, Luxon said he wouldn’t characterise it as a hole in funding.
“What it highlights is ongoing work around continued savings that we will generate to redeploy back into the spending.
“It also underscores the importance of economic growth.”
The majority of the cost pressures are in health, education, Defence Force, transport and disability support services.
There are unfunded pressures in health social development, transport, and the Ministry of Business Innovation and Employment.
Luxon said he was “quite relaxed” about it.
“We’ll have ongoing savings going forward, as we’ve said from day one, and we’ll also continue to…really accelerate the growth in this country.”
Decision on committing NZ troops to Ukraine ‘premature’
More than two dozen nations have pledged to provide troops or other resources to help ensure Ukraine’s security following the war with Russia.
Luxon, who took part in the overnight summit of the so-called coalition of the willing, said it would be premature to commit troops before a peace plan had been secured.
“We are open to looking at that but until we see a peace plan and Cabinet will make a decision about that once hostilities have ceased.
“So while some countries may have done that, that is not New Zealand’s position.”
He said New Zealand was open to putting peacekeepers on the ground but it was a conversation for later.
“Until we see peace break out, until we have clarity around a peace plan, that is the time we will start a conversation with our Cabinet and work out what New Zealand can do.
“That’s why the pressure right now needs to be all piled onto [Russian President Vladimir] Putin to actually show up and actually get a ceasefire negotiated.”