Boost for foodbanks as fuel tax cut, half-priced public transport, ends

Acting Prime Minister Carmel Sepuloni​ has announced a $6 million boost for food banks, as big ticket cost of living measures – fuel tax cuts and half-priced public fares – come to an end.

Although transport costs are expected to increase for many in July, some new more targetted cost of living measures would be introduced. For children aged under 13, public transport will become free. For teenagers and people aged under 25, it will continue to be half-price.

The $5 prescription fee will also be scrapped from July 1.

Sepuloni said an extra $6 million would be made available for food banks across the country, but food providers in Auckland, Tairāwhiti and Hawke’s Bay would have first dibs of the new funds.

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“We know that times are tough right now which is why Government is providing further support to help feed people who are struggling to afford the basics like food,” she said.

Green Party social development spokesperson Ricardo Menéndez March immediately criticised the Government’s focus on food banks.

“Demand for food banks is increasing,” he said.

“But we need to address the reasons people use them in the first place. A May survey showed that rising prices, low incomes and unemployment were the most common reasons.”

The fuel tax cuts and extra public transport subsidies have been ongoing for more than a year.

Since March last year fuel taxes have been cut by 25 cents a litre, while diesel road user charges have had a 36% discount.

Prime Minister Chris Hipkins is in China this week, with a large delegation of ministers, diplomats and businesspeople, and plans to meet President Xi Jinping.

Domestically, Sepuloni will have to respond to have a range of issues. The tertiary education sector is growing increasingly unhappy, as it faces job losses and course closures.