Audrey Young at NZ Herald reports:
A bill capping core Government spending increases to the rate of inflation and population changes was introduced to Parliament yesterday as part of National’s support agreement with Act.
But it is not expected to pass a second reading after consideration by the finance and expenditure select committee.
The Spending Cap (People’s Veto) Bill was introduced by Regulatory Reform Minister and former Act leader Rodney Hide.
It was referred to in the confidence and supply agreement as the Taxpayers’ Rights Bill.
It provides that the only way the cap can be lifted is by majority vote in a referendum.
I like the principle behind the bill – that spending should be capped in real terms, and you need public permission to go higher.
There’s a few countries in Europe that could have benefited from such a law.