Labour's work for the dole scheme

Yesterday Labour launched re-launched re-heated their old 2003 policy which is a subsidised and glorified work for the dole scheme. It didn’t work 7 years ago and it won’t work now especially after they removed youth wages.

When Phil Goff tweeted that the policy was fully costed I cheekily tweeted back at him questioning whether or not it was funded.

Turns out I was right. Their policy is not funded.

The package would cost $251m over four years and would be funded partly by reprioritising $80m from existing schemes, including $58m cut from dole payments. The additional $171m would be paid for out of extra tax revenue netted from the party’s new capital gains tax and top rate of income tax.

Actually, it will be borrowed.  Even on Labour’s heroic numbers, they would be borrowing a shitload more than National is for the next seven years.

We also know that Labour’s vague and volatile CGT (to be sorted out by the expert panel) may not generate anything like the income they believe it would.

Interesting to see ‘reprioritisations’ (ie: cuts).  Labour should tell us what they’re cutting. Aren’t cuts bad?

The administration of this impractical job subsidy also sounds horrendous.  I pity the employers who would have a Government appointed apprentice forced on them – and if bosses are as unscrupulous as Labour always claims – what conditions will be in place to stop an employer gaming these subsidies?

Yet another vague, ‘don’t talk about the details’ policy from Labour and Goff.


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  • William Winter

    Maybe you need to have a bit of a lie-down Whale. It’s just the electoral-cycle. History would suggest that National will win three terms of government.

  • pdm

    Lindsay Mitchell blogged yesterday that this NEW/OLD initiative actually dates back to 1980 when it was launched by Bill Rowling. under the heading Labours Very Old New Policy.

  • toby

    Labour: spending more than they can tax!

  • thor42

    “Reprioritise”. What a wonderfully “political” word. They’ve definitely put that in there so that they “don’t scare the horses” with a nasty little word like “cut”.
    Reminds me of the people who say “utilise” instead of “use”.
    For example – “I will utilise the sanitation facilities.” Translation – “I’ll have a wee.”