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Large Majority of Working Families Miss Out

Large Majority of Working Families Miss Out

Wednesday 19 May 2004

Richard Prebble Press Releases - Other

ACT Leader Richard Prebble questioned the Minister of Finance in parliament today concerning press statements that the Future Directions package in the Budget will be about $2.5 billion and around 300,000 households will benefit. Mr Prebble challenged Dr Cullen's claim that working families would benefit.

The ACT Leader produced figures to refute Dr Cullen's claim that a large majority of working families would be assisted by the Budget.

"Dr Cullen has already stated that eventually just 300,000 families will be assisted by the budget. This means the only role in the budget for the vast majority of New Zealanders is to pay for the $2.5 billion largess.

"Of the 540,000 families in New Zealand with dependent children, just over 150,000 are beneficiary families, so if just 300,000 families are being helped in the Budget, it follows a majority, some 240,000 working families, will get no help from the Budget.

"Dr Cullen's prediction in his speech to Labour's favourite law firm, Chen and Palmer, "I am confident that, as the large majority of working families come to understand what it means for them, they will see how superior it is to the alternative political visions that are on offer", will come back to haunt him. A simple tax cut could have delivered to all 390,000 working families in New Zealand.

"Over $1.5 billion of the eventual $2.5 billion in handouts will go to social welfare beneficiaries. This is not a workers budget it is a welfare budget."


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