TLDR & TLDL: There were surprises aplenty in last night’s energy crisis announcements, including good news in a halving of bus and train fares for at least three months from April 1.
But the 25c/litre cut in the fuel excise levy from midnight last night still leaves those on the lowest incomes who are spending the largest portion of their disposable incomes on rent, food and fuel in precarious positions. The bulk of the $350m in Government subsidies for the tax relief will go to those who use the most fuel, who are most likely to have spare disposable income and be under less housing cost pressure because they are more likely to own homes.
The package doesn’t help out those people spending the biggest share of their income on food and rent. I asked PM Jacinda Ardern about that in the news conference. She said benefit increases agreed last year and due to kick in from April 1 would be sufficient. Paid subscribers can hear the exchange and my comments in the podcast above.
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