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Shipley's Tax Policy Short Sighted

MEDIA RELEASE 2 NOVEMBER 1999

FOR IMMEDIATE RELEASE

SHIPLEY'S TAX POLICY SHORT SIGHTED

The tax cuts promised by the incumbent Prime Minister Jenny Shipley are short sighted and destined to fail claims APSU Student Union.

"The cuts promised by Ms. Shipley in last nights Holmes debate, with or with out the support of her Minister of Finance, are nothing more than electioneering and will not have the desired effect on the New Zealand economy."

"New Zealand is unlikely to benefit long-term through tax cuts," said President John Barkess today. "There are other factors that National appears to have forgotten that attract or deter investment in New Zealand."

"This is not only a student view but is backed up by a paper we received via an Official Information Request. This paper, entitled NEW ZEALANDERS' SKILLS, was prepared by the Ministries of Education and Commerce, and clearly indicated that the important issues are ensuring those entering the labour market have a good combination of specialist and generalist skills.

"Many businesses have complained lately about the difficulties they are facing in finding well educated literate employees. Surely if New Zealand was to offer a well educated healthy workforce this would encourage investment."

"Using the money, that National appears to be collecting in excess of their needs, to invest in education and health would enable businesses to make savings in the cost of their training, in the cost of their efficiency and in their international reputation."

"Presently most of the after tax profit large companies make is sent off shore to the foreign owners and therefore increasing this profit would merely constrict the New Zealand economy further," claimed Mr. Barkess. "Many people say businesses should invest more in education but the fact is they don't."

"Tax cuts are a short term solution which will not address the fundamental issues facing the New Zealand population. New Zealand needs and wants access to a quality education. New Zealand needs and wants a health system in which there is no discrimination based on your ability to pay."

"These messages have been sent loud and clear to all political parties, it is interesting that Ms. Shipley has failed to hear what her charges are saying - or is that she simply doesn't care?"

For further comment contact John Barkess (04) 498 2501 or 025 756 526

END


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