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 Show us the money Mr Cunliffe

Phil Goff's credibility as Labour leader was blown apart in the "Show me the money" debate in Christchurch in 2011. Here's a reminder in case you've forgotten:

Now, three years later, David Cunliffe is leaving himself and Labour wide open to similar "Show me the money" taunts from John Key and his MP's; 3News reports:

Labour says New Zealanders can have confidence it's getting its numbers right despite dumping a Treasury staff member from their position in the leader's office.

Radio Live revealed a long-standing Treasury secondment has been terminated after a dispute over who should pay their salary.

This now leaves Labour with no independent number-cruncher, but leader David Cunliffe says his office has a strong policy team.

"We have very high grade, quantitative analysis and economic modelling skills in our office," says Mr Cunliffe. "The team is led by the Honourable David Parker, who has my absolute confidence."

Economic Development Minister Steven Joyce says many of Labour's policies don not add up and he is not surprised to hear there has been no input from Treasury.

What has happened here is that Labour has effectively sacked the seconded staff from Treasury, in favour of compiling its own numbers and costing its own policies. In some places that would be called creative accounting.

Pardon our naivety, but we would have thought that having policies independently costed would have been a strong selling point. Instead Labour is going to rely on its own numbers straight from the War Room, and free from any skerrick of independent scrutiny. We can see that working; not!

We reckon that the Two Davids are setting themselves up to fail. But hey; who are we to stop them?

FOOTNOTE: For those readers who aren't familiar with the origins of the "Show me the money" line, check out this video clip which is probably NSFW (not suitable for work); unless you work in Labour's War Room!