Budget 2022 will include a focus on the Government’s health reforms and investing in initiatives to reduce emissions and met our climate goals.
“COVID-19 has highlighted how critical a prepared health system is to protect New Zealanders and support their wellbeing.
“Budget 2022 will make significant investments in establishing the new entities that will replace District Health Boards. Managing rising health costs will be a major challenge in coming decades – we will ensure the new entities have a solid base for tackling that challenge.
“The Budget will also begin a multi-year approach to funding the health sector. Initially this will be a two year funding path, then from 2024 we will move to a three year funding plan in line with New Zealand’s first Health Plan,” Grant Robertson said.
Climate change is one of the most pressing long-term challenges facing New Zealand. To respond effectively, we need to make significant investments across multiple Budgets.
“In Budget 2021 I announced the Government would be spending the proceeds of our Emissions Trading Scheme on emissions reductions programmes from Budget 2022 onwards. The Climate Emergency Response Fund (CERF) is the mechanism through which we will do this,” Grant Robertson said.
Climate Change Minister James Shaw confirmed that the fund has been established with $4.5 billion from the Emissions Trading Scheme, based on forecasted proceeds over the next four years.
“The Climate Emergency Response Fund is a game-changer that will provide billions of dollars over the next four years to help meet our Government’s climate goals. It has been made possible only because of the changes we made to the ETS that now mean our largest polluters are finally paying a proper price for their climate pollution.
“Next year our Government will publish an Emissions Reduction Plan that will set the direction for climate action in New Zealand for the next 15 years. Over this time we will need to cut carbon pollution from nearly everything we do – from the way we grow our food, to how we generate energy to heat our homes, to the way we get around our towns and cities.
“The Climate Emergency Response Fund will help deliver these emissions reductions and in turn, create more of the jobs and opportunities for prosperity that can be driven by the transition to a low-carbon future,” James Shaw said.
“We are lifting the operating allowance to a one-off $6 billion per year for Budget 2022 to invest in major programmes, including the health reforms. The allowances will then reduce to $4 billion at Budget 2023, then $3 billion in Budgets 2024 and 2025. The multi-year capital allowance will increase to $9.8 billion,” Grant Robertson said.
“This one-off increase in operating allowance is designed to ensure we can forge ahead with major reform programmes that will have long term benefits for New Zealand. The remainder of the allowances will cover significant cost pressures and fulfilling our manifesto commitments.
“This will require prioritisation, and striking a careful balance between the important projects that need to be done and the ongoing need for fiscal sustainability,” Grant Robertson said.