The New Zealand Nurses Organisation (NZNO) congratulates the Government for making the tough call to cancel tax cuts planned for next year and 2011. This will not be a popular decision but it is the right call.

NZNO welcomes the protected increases in Health. Strong health services will come under increasing pressure as rising unemployment, forecast to reach 8% by 2011, delivers its attendant offspring; rising illness. Perhaps the most destructive impact of recession is the detrimental impact on health and widening social disparity. For that reason NZNO assesses this budget most for its likely impact on jobs.

"The more that is done to keep people in jobs the healthier New Zealanders will be. Funding for health is more than just funding for hospitals or medicines," chief executive officer Geoff Annals said.

For that reason alone, the plan to invest $323.3 on home insulation and clean heating is an excellent one. Not only will the work create jobs but warm homes significantly reduce illness. However NZNO is very concerned the large cuts announced in government departments' spending will drive a continuing haemorrhage of jobs. "If work being done is no longer deemed to be required, there are plenty of new challenges these skilled workers would be better applied to than throwing them onto the dole,"Annals said.

"The budget announcements made on health services and the health workforce are consistent with the promises National made in its election campaign and with what we were expecting. We welcome this and acknowledge this is another tough but good call. Delivery of the promised additional funding for hospices is great news," Annals said.

"We remain deeply concerned about the funding for residential age care and certainly do not believe that funding increase will go anywhere near the amount needed in the sector to address the crisis it is in. We are also unclear as to how the funding will be distributed and calculated," said Annals.