Last week, University of Auckland student Anya* told me how she’s getting by on one meal a day because she can no longer afford the most basic groceries.
Her friends shared stories of pleading for extra shifts at their part-time jobs to help ease the pressure on their families and, in one heart wrenching case, contemplating having to choose between continuing their education and keeping a roof over their heads.
This is the reality of what a so-called technical recession looks like for so many Kiwis. The cost of everything from food to fuel is up, driven by inflation rates that Aotearoa New Zealand hasn’t experienced since 1990. Every week, we’re spending more for less. And while we’re all hoping the worst is behind us, commentators have a more sobering view, with Kiwibank’s Chief Economist predicting that the second half of the year will be tougher than the first.
We often hear the argument that this is a global issue - the implication being this is a cost of living crisis we had no choice but to have. The reality is that tradeable inflation (the component affected by international price movements and exchange rates) has dropped by nearly 24%, while non-tradeable aka NZ-centric inflation continues to rise. For the fifth year in a row, inflation is more than 200% higher than the Reserve Bank target.
Despite facing similar macro challenges, almost every country we compare ourselves with is in better economic shape. This is a New Zealand issue. And there’s no denying that the Government could and should have acted to get things under control before our economy spiralled backwards.
Cutting wasteful Government spending would have been a great start. The word limit on this article sadly precludes me from sharing a comprehensive list, but an annual spend of $1.2 billion on consultants is staggering - especially when you consider that the in-house public service has simultaneously grown by 33% since Labour came into office. And judging by the quality of our services, the value delivered by this expenditure is questionable at best.
Public spending is critical to a healthy economy, but only when it delivers real results for our communities. Taxpayer monies should go towards boosting our critical frontline services, building infrastructure that is resilient and helps us grow, and easing the pain on hardworking residents and businesses. And our Governments should be measured and held accountable based on the outcomes they deliver, not the announcements they make.
When I’m out campaigning in Auckland Central, I meet so many people who spend every hour of their day working hard to grow their businesses, help their communities and create jobs. It’s those people, and the people they employ, that we need to unleash to really get our economy humming.
That means reducing the cost of living, restoring discipline to government spending, cutting red tape and backing our businesses to succeed. We’ve progressed so much as a city but at the moment our innovation feels held back – it’s hard to innovate when you’re drowning in costs and our young people can no longer afford to call Auckland Central home.
Anya and her friends deserve better. We all do. *name changed to protect privacy
Mahesh Muralidhar National Party Candidate for Auckland Central
E: mahesh.muralidhar@national.org.nz
www.national.org.nz/maheshmuralidhar
Authorised by M Muralidhar, 188 Ponsonby Road, Auckland
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Published 3 July 2023