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Labour has admitted its election fiscal plan contains an error of almost $90 million after a $44.8 million cost was incorrectly recorded as a saving.
The Taxpayers’ Union raised the issue on Tuesday, saying Labour had incorrectly accounted for the cost of reversing Government changes to the Income Related Rent Subsidy and Accommodation Supplement.
Labour’s fiscal plan recorded the policy change as producing a $44.8 million saving between 2026/27 and 2030/31.
The Taxpayers’ Union said reversing the Government policy would instead create a $44.8 million cost, leaving Labour’s fiscal position overstated by $89.6 million over the forecast period.
Labour confirmed the mistake after it was raised by RNZ.
“A cost was incorrectly recorded as a saving, and a saving recorded as a cost. We’ve checked it and will correct our Fiscal Plan,” a Labour spokesperson said.
“This is a straightforward and small correction, and does not change the fact that we are fully able to pay for our commitments.”
Taxpayers’ Union Head of Policy James Ross said the mistake raised further questions about the level of detail Labour had released behind its costings.
“Labour won’t open its books and share its workings, and perhaps this shows why. The more people pore over its fiscal plan, the more gaps and mistakes they seem to find,” Ross said.
“This isn’t some complicated forecasting dispute. Labour seems to have taken the Government’s own numbers and forgotten to reverse the signs when undoing their policy, turning a $44.8 million cost into a $44.8 million saving.”
Ross also questioned Labour’s reliance on external verification of its figures and called on the party to release its workings and correspondence with accounting firm Hall Chadwick.
Labour said the correction would not affect its ability to fund the commitments contained in the fiscal plan.