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Tax relief will be welcomed by stressed families

18 August 2005

Tax relief will be welcomed by stressed families

The union representing the nation’s social workers and other public servants who work with families is welcoming the tax relief package announced by the government today.

The Public Service Association (PSA) has 50,000 members working in central and local government, and in the health sector.

PSA National Secretary Richard Wagstaff said the union’s members work with stressed families every day and the additional support being made available will make a major difference to keeping families strong and together.

“Many families struggle to make ends meet and turn to public servants working in places like Child, Youth and Family, Housing New Zealand and public health organisation looking for help.

“Child poverty grew rapidly during the 1990s fuelling the rise of third world problems like the meningitis outbreak, overcrowded housing and the growth of foodbanks. Since the change of government in 1999, our members have been charged with turning these problems around.

“The package announced today shows the value of targeting assistance to those who need it most, rather than spraying small dollops of money around everywhere through tax cuts. The kind of gains offered to families in today’s package simply could be delivered by tax cuts because they don’t pay enough tax for any tax cut to match.

“The government has been able to rebuild public services, pay down our external debt and give substantial assistance to families while maintaining a healthy and growing economy.

“The alternative proposition being advanced by other political parties would see essential public services slashed to fund tax cuts that would overwhelming favour people on higher incomes. All New Zealanders would be worse off it that were to happen,” Richard Wagstaff said.


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