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Subsidy Reduction is Tariff by Another Name

Subsidy Reduction is Tariff by Another Name

Thursday 8 Nov 2001 Penny Webster Press Releases -- Economy

Jim Anderton's "subsidy reduction" should be called what it really is - a backdoor tariff, ACT Customs Spokesman MP Penny Webster said today.

"This disguised tariff will be passed on from New Zealand importers to businesses, who will then raise prices for consumers. Mr Anderton's idea that this tariff will force people to buy Kiwi-made products is nonsense. This will increase the cost of New Zealand-made goods that require overseas material. And it will push up the price on products that we can't make here.

"Mr Anderton hasn't even considered the impact on small businesses that import and distribute unique goods and parts. This is based on ideology. It may sound populist, but in the end, New Zealanders will pay," Mrs Webster said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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