Through your eyes: Budget reaction

The Otago Daily Times spoke with three people before and after the budget - a young professional, a worker nearing retirement and the owner of a small/medium business. This is what they had to say.

Haley Paterson.
Haley Paterson.
Haley Paterson (27), Forsyth Barr investment adviser.

Has a mortgage and a small student loan.

What she wanted: "From a generational point of view, I would like to see a continuation of interest-free student loans . . .

Also want job security and for young people who, say, may have just graduated, the chance to come into a job."

What she expected: "From what I have been reading, I don't think there are going to be any surprises.

I think it will be a very low-key, conservative budget."

What she got: "Good to see they are looking to spend money on infrastructure.

Will definitely consider using the funding provided to insulate my house."


Investment adviser Haley Paterson expected few surprises from yesterday's budget.

For Dunedin investment adviser Haley Paterson, yesterday's Budget held few surprises but some positives for her generation and young professionals.

Ms Paterson, who has worked for Forsyth Barr for about eight months, said it was good to see the Government was spending money on infrastructure in order to keep jobs.

Students finishing degrees or young people returning from overseas would benefit if there were jobs available, she said.

There were a few people who would be disappointed by the removal of tax cuts, but initiatives such as the national cycleway and new schools were good for the country.

The continuation of student support payments was a bonus, and she hoped this would also mean interest-free student loans would continue.

Ms Paterson owns a home and said she would "definitely" consider applying for funding towards home insulation.

She said it seemed the Government was trying to increase spending as well as keeping debt under control.

Ms Paterson said people in their 20s needed to be positive about the economic situation as nothing good would come from being pessimistic.

Married to Pam with adult children.

Income: $55,000 to $65,000.

What he expected/wanted: Planned tax cuts, restraint, confirmation ACC will continue as a government-owned enterprise and consolidation of KiwiSaver.

What he got: No tax cuts, but pleased with social spending.

Disappointment at the lack of previously promised tax cuts was offset by the announcements on social spending in yesterday's Budget for Dunedin man Bill Sykes.

Mr Sykes, who plans to retire next April from his job as a Dunedin City Council archivist, had not expected yesterday's Budget to make many people happy or make much difference to his circumstances, he said.

He considered it a fair Budget in the circumstances, and one which had not made anybody suffer.

He had wanted tax cuts because he considered they would give a boost to the economy, which could help reduce the length of the recession.

Extra spending of $750 million on health in the next financial year was pleasing, particularly the boost to subsidised medicines and increases in spending on care of the aged and hospice care.

Mr Sykes supported the insulation programme funding, although it will not benefit him because his Waldronville house is already fully insulated.

In the future, he would like to see people given cheaper electricity rates if they could show they used renewable, carbon free energy resources in their homes.

This would encourage people to reduce pollution and their carbon footprint.

Mr Sykes was pleased to see no erosion of KiwiSaver, a programme he considered should be consolidated and promoted.

One thing he would have liked to see which was lacking was a package to help those marking time after redundancy.

 

Employs: 44 staff in Mosgiel and Central Otago, including five apprentices

What he expected/wanted: Reduction in business compliance costs and assistance for businesses taking on apprentices

What he got: Nothing, although he is pleased with education and health spending

Plumbing business owner Chris Adams says the Budget was uneventful as far as he was concerned.

What he would have liked to see was a reduction in the cost of complying with the Government's rules.

These would include reducing the frequency of tax reporting, and cutting back on some health and safety requirements which he said had "gone a bit far" and did not allow room for common sense.

Staff were frustrated by such requirements and he estimated "over-the-top" compliance issues cost him $20,000 a year.

Another difficulty was that while he had work, it was getting harder to get paid for it.

Because it was hard for people to get credit, they were using him as a creditor.

Getting money out of customers was "the hardest it's ever been".

With only a couple of days to go in the month, his income was 35% down because people were either not paying or only part-paying their bills.

His circumstances had not changed, but he would also find it harder to borrow capital if he needed it.

Banks were not really supporting successful businesses and he would have liked greater encouragement of that.

The announcement this week of a drop in income for dairy farmers would further impact on this, making it even harder for businesses to borrow money, as banks had lent heavily to dairy farmers, he said.

Mr Adams would have liked Government assistance for taking on apprentices.

It was "very much user pays" and it cost businesses several thousand dollars to have a trainee.

Despite unemployment, there was still a shortage of skilled workers and plumbers were an ageing group - "go to a master plumbers' meeting and you think you are at a Grey Power meeting".

On the positive side, he was pleased to see the level of health and education spending.

 

 

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