Oct 13, 2008

Student Allowance

The idea behind what Helen Clark announced today is fine. But is it affordable in current circumstances? And would it be better than a bigger tax cut? The answer is no and no.

This is the final nail in the coffin for the MFAT step change, which is a bit of a shame as some of the money has already been programmed. What the Swedes will think of an Embassy opening and then closing we do not know - not that we would have opened in Sweden without full stakeholder consultation.

So $210 million of the MFAT $600 million is now spent. What is going to happen to the remaining $390 million? Which vested interest is going to benefit?