HEADLINES & NEWS
TURN LEFT - THE FIRST LABOUR BUDGED IN TEN YEARS
The Labour-Alliance government has presented its first budget, promising extra spending in key areas, at the same time as forecasting a bigger surplus and what it describes as "fiscally conservative" handling of the economy. The Finance Minister Michael Cullen has set out plans to spend an additional one point two billion dollars over the next financial year, and five point nine billion over three years. Key areas to benefit are health - particularly mental health, education, housing, regional development, superannuation, the environment and some help for industry. Among the larger initiatives are a [illegible] of measures aimed at closing the gaps between Māori and Pacific Islanders [illegible] other New Zealanders, totalling almost quarter of a billion dollars over four years. Finance Minister Micheal Cullen told Parliament while the budget does not attempt to do everything at once - it does mark out a new directions and points the way to rebuilding a fair and sustainable social and economic order. CUT
Our parliamentary chief reporter Kathryn Street has been scrutinising the budget - she joins me now. LIVE
Businesses have been vocal in their unhappiness with government direction in recent months and are reacting cooly to the budget. John Pask, the Policy Manager for the Employers' Federation, says the budget has taken a scattergun approach to spending and there is not the king hit business was looking for to boost confidence. CUT
The Prime Minister Helen Clark joins me now. LIVE
And what's the Opposition's take on the governments economic direction? The acting leader of the National party, Wyatt Creech is with me now. LIVE
The Budget paints a picture of a healthy economy over the next few years, with growth averaging around three per cent, unemployment falling by a fifth and the Government running increasing surpluses.
Our Economics Correspondent, Stephen Harris, has been looking at the figures and joins me now.
BUSINESS NEWS with CATHERINE WALBRIDGE
The Green Party has secured 15 million dollars worth of initiatives in the Budget.
Our political staff say the fact the Greens have been able to unveil them as a separate package on Budget day is a coup for a party not part of the Government.
And the Greens co-leader Jeanette Fitzsimons told me those initiatives dont just benefit the environment. PREREC
5.30 NEWS HEADLINES
SPORT with CHRIS REID
The budget earmarks 331 million dollars for economic development to be spent helping the regions and industry in general, over the next four years. There are still details missing over how exactly that money will be spent, but deputy Prime MInister and Minister for Economic Development Jim Anderton says the package is significant for the whole country. Anderton cut
Government spending on health services will top seven billion dollars in the coming year. Just over 400-million dollars extra is to be spent on health, with the largest increases going to reducing hospital waiting lists and improving mental health services. The Mental Health Commission says the additional 257-million dollars over four years for mental health is not the full amount required under its Blueprint for mental health services. But the mental health commissioner Barbara Disley says it is all the sector could cope with for now. DROP IN Meanwhile, an extra 74-million-dollars will be used to reduce the waiting lists by providing more elective surgery.
[illegible] are welcoming the budget's big boost in their day-to-day funding, while others say there's plenty of good news for the school and early childhood sector.
However, those in the tertiary sector are more cautious. The government is offering a 2.3 percent increase in funding as long as institutions agree to freeze fees. Students are hoping the move will prevent further fee hikes. But the deputy vice-chancellor of Auckland University, Professor Raewyn Dalziel, says there's concern that extra money won't be enough to address the many difficulties facing universities and polytechnics. DROP-IN DALZIEL
The acting National party leader, Wyatt Creech, led off the budget debate in Parliament this afternoon by moving a motion of no-confidence in the Government. The leaders of all seven parties in Parliament spoke in today's debate. Clare Pasley has their reaction to the budget. PKG
FIJI HOSTAGE CRISIS CONTINUES,
The military regime in Fiji is making preparations to conivince the Commonwealth Action Group that the efforts of the military are all focused on achieving the return of a democratic government. The four member commonwealth delegation - which includes New Zealand foreign affairs minister Phil Goff is due in Suva about now on what they're calling an exploratory visit. Our reporter in Suva Shona Geary joins us now. LIVE
The Fiji hostage crisis continues, with one of the hostages pleading with her son to stop organising protest marches against the leader of the attempted coup, George Speight. Lavinia Padarath is being held hostage by Speight at parliament, along with the prime minister and 30 other politicians. Her son Ben has attempted to stage one protest march and is trying to organise another. But today his mother sent a message via the Red Cross to stop - Mr Pradath believes if he ignores her plea, Speight will cut his mother's Red Cross visits. Mr Padarath is now waiting to hear whether the military will permit his march - I asked him how he got his mother's message. PREREC
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