The Finance Minister is defending using the Government's COVID fund to install cameras on fishing boats and fund art therapy as the cost of living crisis bites.
Grant Robertson was quizzed about the Government's spending on Tuesday ahead of the Budget announcement in May.
It comes amid a cost of living crisis and record-high inflation of 6.9 percent in the March quarter - the largest year-on-year increase in nearly 32 years. Russia's invasion of Ukraine is also causing financial pressure with supply chain issues pushing petrol prices up.
The Opposition has blamed the Government's spending for the high inflation rates while Robertson says it's an issue faced around the world, pointing to the COVID-19 pandemic and Russia's invasion of Ukraine.
The Finance Minister defended the Government's spending on Tuesday, particularly its use of the COVID Response and Recovery Fund (CRRF).
The CRRF was introduced in response to the pandemic and was for keeping Kiwis safe and helping the country's economic recovery. But it has been contentious with former Opposition leader Judith Collins and ACT leader David Seymour suggesting the Government was spending too much on non-COVID related issues.
Robertson was questioned about his spending from the fund on Tuesday, specifically whether in hindsight, he regretted using it to pay for cameras on fishing boats, horse racing, internet modems, and for art grants and therapy.
When asked by AM co-host Ryan Bridge whether he thought the spending was appropriate Robertson said: "I do".
"I think it's really important to remember the fund was set up as both an immediate response fund in terms of the health issues, the Wage Subsidy programme, and that's by far and away the largest part of this fund - $23 billion that's gone into supporting businesses, gone into supporting households via direct support as well as through the Inland Revenue," he said.
Robertson said while many of the areas mentioned might not seem COVID related, they are.
"If we just pick out a couple of the things you mention there, the modems were to make sure children could learn from home where they did not have the internet in place. That was a really important thing to do during COVID that also has a long term benefit.
"The art grants that you're talking about - the work for our artists in New Zealand dried up when COVID hit and that has been a real struggle since then so that support actually kept artists in work."
Robertson also highlighted much lower than expected unemployment rates as a sign the Government's strategy worked.
"We've got 3.2 percent unemployment at the end of this. I stood in the theatrette that I am in right now and I had a Treasury report that said we were going to have 10 percent unemployment and we said we weren't prepared to put up with that.
"I am proud of our 3.2 percent result, I am proud of 5 percent average annual growth. I know it is tough for people and we go through our spending every Budget to make sure it's value for money and I think New Zealanders have been well served by the approach that we have taken."
It's not the first time Robertson has faced criticism over his COVID spending. In September 2021 National and ACT both raised concerns about the CRRF's use.
"We know COVID-19 has created the need to support those affected by the various lockdowns. But funding for things like cameras on fishing boats and Papua New Guinea tattoo practice and revival should be put through normal Budget scrutiny, not slapped on the COVID fund tab," National MP Michael Woodhouse said at the time.
It was a sentiment shared by Seymour.
"COVID related spending would include things like the wage subsidy and Resurgence Payment. It would not include things like cameras on fishing boats, the Te Papa Spirit Collection and the ballet," he said.
"This money comes from taxpayers and it needs to be paid back. Businesses that have been forced to shut and are operating under restricted conditions are crying out for support. It's time for Robertson to get his priorities straight."
