It is New Zealanders living in reality who will bear the brunt of the continuing economic downturn, said ACT Leader, Hon Richard Prebble.

The Kiwi dollar has fallen 11.7 per cent since the election of the coalition Government, when combined with the fact that imports contribute 38% of GDP, provides a conservative indication that the average household is at least 4 per cent poorer.

“Only somebody living in a rent free state house, who does not have to pay for petrol like deputy Prime Minister, Jim Anderton, could welcome these developments.

New Zealanders will be worse off as the petrol price increases are felt almost instantly through the economy. As transport costs contribute to over 12 per cent of all purchases nobody will be excluded. As wages and salaries are not adjusted for price changes – those on super or wages will be hardest hit.

“The coalition’s decision to switch the calculation of superannuation from the Consumers Price Index to 67 per cent of the average wage means superannuatints will feel the full force of the lower dollar.

“House mortgages have increased fifty per cent since the election. In real terms the average household is now $100 worse off under the Labour Alliance coalition.

“The noticeable drop in purchasing power will place severe pressure on household budgets.

“The fall in the dollar continues the coalition Governments assault on middle income New Zealand. These are the people whose businesses are hammered by ACC nationalisation, the Employment Relations Act and increased income tax,” said Hon Richard Prebble.

ENDS

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