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Cullen Deceiving Public

11 April 2002

"Claims by Finance Minister Michael Cullen that proposed tax cuts by National will lead to a higher cost of capital and lower social spending are simply not true," says National's Finance spokesman David Carter.

"Dr Cullen is already starting Labour's well-worn programme of deception and the only thing economical about his claim is the truth.

"In fact, it is his policies of increasing public debt that is leading to higher interest rates."

Mr Carter says National can afford tax cuts and maintain spending on key social areas because it doesn't support the Cullen super fund.

"This fund is going to suck $2 billion out of the New Zealand economy every year.

"The impact of taking the super fund out of the fiscal equation and putting in National's proposed tax cuts means we will run lower operating balances, but will also have significantly lower debt," Mr Carter concluded.


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