0 Labour can only spend it once

We blogged last week about Bill English's insight to Parliament during Tuesday's Question Time. That insight was that Labour had factored in the proceeds of the partial asset sales it opposed so vehemently into the party's alternative budget, and the money was going to be spent. Here's what Mr English said to Parliament:

Hon BILL ENGLISH : I have seen reports from an unlikely source: an alternative budget that was issued in the last week or two. The reports indicate that this alternative approach to the Government’s finances will continue the current Government’s approach of using proceeds from the share offer programme. The Opposition budget includes the $4.7 billion proceeds from the asset sales being spent on public assets, which was rather a surprise given that they had spent 4 years vigorously opposing the policy.

Now we realise with Labour policy, the final policy bears little resemblance to what is first released. And this is no exception; TVNZ reports:

Labour would look at buying back state assets on a "case-by-case" basis, says the party's leader David Cunliffe.
"We may well, and we would like to," Mr Cunliffe told TVNZ's Q+A this morning.
"And we will take opportunities as they arise and there'll be more to say about that issue between now and the election I promise you," he added.

Is it any wonder that David Cunliffe is being mocked for his "yeah,  nah" pronouncements on policy issues?  He can only spend the money in the Future Investment Fund established by National once. And Labour's alternative budget has already accounted for that.

Does David Cunliffe not realise that he can only spend that money once? Either it is part of spending which Labour has already committed to in its alternative budget, or it is available to buy back the minority shareholding in SOE's. But it cannot be both.

It looks as though David Cunliffe is heading towards a similar moment to that which sunk Phil Goff in 2011, whilst Labour continues to promise to spend up large like drunken sailors:

0 Quote of the Day - 2 July 2014

This was sent to us overnight by an alert reader. It's Bill English's answer to a supplementary question during Question Time yesterday:

John Hayes : What reports has he seen supporting the Government’s approach to investing proceeds from the share offer programme in new public assets?

Hon BILL ENGLISH : I have seen reports from an unlikely source: an alternative budget that was issued in the last week or two. The reports indicate that this alternative approach to the Government’s finances will continue the current Government’s approach of using proceeds from the share offer programme. The Opposition budget includes the $4.7 billion proceeds from the asset sales being spent on public assets, which was rather a surprise given that they had spent 4 years vigorously opposing the policy. 

This one seems to have snuck under the radar just a tad, as answers to patsy questions from Government backbenchers often do.

But this one is particularly significant. Labour appears to have factored in the proceeds of partial asset sales into its "alternative budget". Doesn't it make all the hot air generated by the Greens and Labour as they railed against asset sales all seem a little hollow, if Labour is simply going to go an a spending spree with the loot?

We guess it answers one question though. There is clearly going to be no buy-back of the shares in Air New Zealand, Mighty River Power, Meridian and Genesis, because Labour can only spend the money once. 

And wasn't a buy-back of assets a bottom line for Winston Peters in potential coalition negotiations? Has Labour slammed the door in Mr Peters' face to go on a spending spree with the Greens?

David Cunliffe and David Parker are economic hypocrites. They should not be allowed within a bull's roar of the Treasury benches.