More than two million New Zealanders will get a one-off $350 sweetener as part of the Budget’s centrepiece $1 billion cost-of-living relief package.

The temporary short-term support is counterbalanced by a record $11.1 billion for the health system as the government scraps district health boards (DHBs) and replaces them with a central agency.

“Our economy has come through the covid-19 shock better than almost anywhere else in the world,” Prime Minister Jacinda Ardern said in a statement. She is in covid isolation.

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“But as the pandemic subsides, other challenges both long-term and more immediate, have come to the fore. This Budget responds to those challenges.”

Ongoing uncertainty over inflation, covid-19 and the Russian invasion of Ukraine continue to cast a pall over the economy until at least the end of the year.

A large $19 billion deficit is expected this year, returning to surplus in 2025.

Treasury is forecasting house prices to ease and unemployment to drop as low as 3 percent.

Cost-of-living sweetener
New Zealanders aged 18 and over will be eligible for the $350 payment unless they earn more than $70,000 a year or already receive the Winter Energy Payment.

The sum will be paid in three instalments over August, September and October, working out at roughly $27 a week.

The temporary payment is estimated to cost $814 million — funded out of the remaining money in the covid-19 war-chest which is now being wound up.

NZ Finance Minister Grant Robertson delivers Budget 2022. Video: RNZ News

The support comes with a two-month extension to the fuel tax reduction and half-price public transport given the current high fuel prices.

New Zealanders who have a community services card will continue to get half-price public transport permanently from mid-September.

“While we know the current storm will pass, it’s important we do what we can to take the hard edges off it now,” Ardern said.

The government will also rush through legislation under urgency over the next few days to crack down on supermarkets in an effort to reduce grocery bills.

The legislation will ban supermarkets from using restrictive covenants to prevent competitors from accessing land to open new stores.

Ministers flagged further announcements in response to the Commerce Commission’s recent report in the sector “in the coming days”.

Health service
The Budget contains “the largest investment ever in [the] health system” — $11.1 billion — as the government presses ahead with its plan to replace DHBs with a centralised health service.

An initial $1.8b annual investment this year will help clear DHBs’ debt, giving the replacement Health New Zealand service and Māori Health Authority a “clean start”.

Health Minister Andrew Little said the 20 DHBs had collectively run annual deficits in 12 of the 13 years since 2008.

“As Health NZ takes over the books from the 20 DHBs on 1 July, a funding boost is being provided so the national system can start with a clean slate.”

The Māori Health Authority will get $168m over four years to directly commission hauora Māori services.

New Zealand’s drug-buyer Pharmac will also get an extra $191m over the next two years – in what Little says is the medicine budget’s “biggest-ever increase”.

It brings total funding to $1.2 billion which is 43 percent higher than when Labour was elected in 2017.

“Pharmac has assured me it will use this funding to secure as many medicines on its list as it can, with a focus on better cancer treatments, to ensure as many New Zealanders as possible benefit from this biggest-ever increase to its medicines funding,” Little said.

More than $166 million has been put aside over four years for ambulance services, adding more than 60 vehicles to the road fleet and about 250 more paramedics and frontline staff. Another $90.7 million will go towards air ambulance services to replace ageing aircraft with modern helicopters.

The Budget increases dental grants for low-income families from $300 to $1000 in line with Labour’s 2020 campaign promise.

A new Ministry for Disabled People is also being established at a cost of $100 million.

Housing support
While the housing market is showing signs of slowing, the Budget includes more support for first home buyers with funding available for about 7000 more grants.

House price caps across regions have been increased to line up with lower quartile market values for new and existing properties.

It means some significant shifts — both Wellington’s cap and Queenstown’s jump from $650,000 to $925,000, and Tauranga’s jumps from $600,000 to $875,000.

The income caps remain the same but will be reviewed every six months along with the new house price caps.

A new $350 million housing fund has also been set up where not-for-profit developers can apply for grants to build affordable rental accommodation.

Education equity
Replacing school deciles is the single biggest area of new spending for education.

The Budget provides more than $80 million a year for the equity index which replaces deciles as the measure of disadvantage in schools.

Most of the money, $75 million a year, will go directly to schools, adding to the $150 million they currently receive through the decile-based system.

The budget increases school operations grants and tertiary and early childhood education subsidies by 2.75 percent.

There is also $266 million over four years to give early education teachers pay parity with school teachers.

In tertiary education, the Budget provides $56 million a year to pay for an expected increase in enrolments next year and in 2024.

There is also $40 million for modernising polytechnic facilities.

Māori health, wellbeing
More than half a billion dollars is being pumped into the Māori Health sector with $579.9 million going towards Māori health and wellbeing.

The Māori Health Authority, Te Mana Hauora, is set to be launched July 1 and will receive $188.1 million over four years for direct commissioning of services.

Some $20.1 million will go to support iwi-Māori partnership boards, and $30 million will be invested into Maori providers and health workers to provide support and sustain capital infrastructure.

Lack of workforce capability has been identified as a key factor in being able to bolster Te Mana Hauora — and $39 million will be used for Māori workforce training and development to support them within the new health system.

The $579.9 million invested in Māori health and wellbeing is on top of the $11.1 billion health allocation.

This article is republished under a community partnership agreement with RNZ.

A media bribe? More like the deal of the century.

Fifty-five million dollars does sound like a lot of money. It could buy you a fantastic jet-setting lifestyle, homes around the world and certainly the freedom to never work again.

But what it won’t buy you is influence over a near 200-year-old industry that costs billions to run every year.

• READ MORE: Local Democracy Reporting reports on Asia Pacific Report

Yet, as the government’s Public Interest Journalism Fund turns towards its home straight, there is the baffling suggestion that somehow editors around New Zealand have all been “bought” by the Labour government.

It is a false, dangerous and frankly lazy assumption.

One of the bigger recipients of the fund is the Local Democracy Reporting scheme. It takes about $1.5 million a year. It will likely always need public money because it was set up to fix a problem.

Regional news is struggling. Advertising revenue has been hoovered by tech giants.

Facebook versus the Akaroa Mail… who would you bet on?

Slashed to survive
So, local radio stations, community papers and even regional titles in place for more than a century have had to slash to survive.

Reporters could no more sit in council meetings, chase up the activities of ports or dig into what district health boards are up to. There wasn’t the time. There wasn’t the money.

Journalists, already earning scandalously small wages, got sacked and local news got smaller.

Private media did not step in to fill the gap as there was no profit to be had.

So local lawmakers were quietly left alone to manage ratepayer money. Some did better than others.

Addressing this information vacuum, RNZ and the News Publishers’ Association got creative.

In 2019, they set up a project known as Local Democracy Reporting. Based on similar schemes in Canada and the UK, it now manages 15 reporters around the country.

Seeking the truth
The journalists, funded by taxpayer money, are employed to go and seek truth from publicly elected people and organisations.

Stories they write can be accessed by rival media outlets at the same time as they go to print by the host newsroom. It is, at its core, a domestic wire service.

Last year, LDR reporters wrote more than 3000 local stories from around the country generating more than 9 million page views.

Stories from the top to bottom of New Zealand were shared for free to the 30 media partners who sign up to the scheme.

And since the project’s inception in 2019, how many stories have been questioned by the purse holders at NZ On Air? Not one. Not a single email, telephone call or meeting has questioned the editorial output of any one of the reporters.

Neither has there been a single suggestion of a news line that reporters might consider. And if there had been, you can take it as gospel that these reporters would chuck the suggestions straight in the bin.

Journalists value their independence.

LDR reporters not ‘newbies’
LDR reporters are not “newbies” to the game either. They are at least mid-career and know their patches well. Most are part of a newsroom they worked in before LDR existed and are well in tune with their audience.

They are Māori, Pākehā, female, male, old and young. But most importantly they are skilled reporters who spend their time searching for fact, inconsistency, lies and truth.

The idea that they and their editors are now craven to government paymasters that they have never met is both preposterous and insulting.

And the best way to see this is to look at the stories. They hardly paint the government of the day in a flattering light.

Covid-19 rules, new laws for farmers, racial inequity and management of water are just some of the topics given regional voice. In these stories, government ministers don’t get a look in.

Some who decry public funding of news are also quick to complain that the ‘metropolitan elite’ don’t pay enough attention to the smaller towns and communities.

They say the mainstream media has no clue about ‘real New Zealand, doing it tough’.

Stitching it all together
LDR is in place to address that very concern.

Up and down the country, the reporters go out and talk to iwi, business owners, parents, councillors and mayors. They stitch it all together and get it in the news.

If you want to judge the success and worth of a local democracy reporter, go talk to your local councillors. Ask if they enjoy having reporters present at meetings. If they are honest, they will tell you that they don’t.

They know public discussion of any rate increase, speed limit change or building project could be online to a big audience within minutes.

The LDR project constantly keeps its eye on the use of public cash all around the country. It costs every New Zealander about 30 cents a year. What a bargain.

David Reid is the Local Democracy Reporting manager. LD Reporting is funded by NZ On Air; Asia Pacific Report is an LDR partner.