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Govt Must Cut Taxes & Red Tape Now: Hide

Govt Must Cut Taxes & Red Tape Now: Hide

Yet another hike in interest rates is further evidence that the Labour Government must cut taxes and slash compliance costs now, ACT New Zealand Leader Rodney Hide said today.

"The Government's failure to address the supply-side of our economy by cutting taxes, reducing red tape and relaxing our employment laws, has made doing business in New Zealand extremely difficult," Mr Hide said.

"These three factors make it tough to supply labour, resources and capital - all of which make for an growing economy. Instead, what we have is a constrained economy - resulting in higher prices.

"To stop the inflationary pressures brought on by Labour's shoddy economic management, the Reserve Bank has been forced to increase interest rates - for the sixth time this year.

"Michael Cullen is responsible for the latest rise in interest rates through his shonky mismanagement of the New Zealand economy.

"ACT offers a more simple solution to addressing rising prices: lower taxes, less red tape and more flexible labour laws.

"That would boost our economy, improve every Kiwi's standard of living, and ensure a freer and more prosperous New Zealand," Mr Hide said.

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