Auckland (The NZ Today)
Labour has acknowledged an $89.6 million error in its election fiscal plan after a housing-related cost was entered incorrectly, but says the mistake does not affect its ability to fund its campaign promises.
The issue relates to Labour’s plan to reverse changes involving the Income-Related Rent Subsidy and Accommodation Supplement.
A $44.8 million cost was recorded as a saving, creating an overall difference of $89.6 million in the final calculations.
Labour confirmed the mistake after it was raised by the Taxpayers’ Union and subsequently put to the party by RNZ.
A Labour spokesperson said the fiscal plan would be corrected, describing the problem as a “straightforward and small correction”.
The party maintains the error does not alter its wider fiscal position or the funding available for its election commitments.
Labour’s published fiscal plan says all of its election policies fit within the existing $2.4 billion annual operating allowance and future capital allowances, while leaving almost $8 billion of future capital funding unallocated.
The housing programme at the centre of the correction forms part of Labour’s wider Start Work Now policy, which includes $2.9 billion in capital funding for Kāinga Ora and $745 million in operating funding for additional Income-Related Rent Subsidy and other housing costs.
Labour has also said its fiscal plan was independently reviewed by accounting firm Hall Chadwick, which found the spending and revenue estimates were reasonable subject to the assumptions behind individual policies.
The correction comes only days after Labour released the plan as a central part of its election campaign and insisted every commitment had been fully costed.
The party says that position remains unchanged despite the accounting error.
Source: Labour fiscal plan and Labour policy documents; additional reporting by RNZ.
