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Households no better off under Labour

Households no better off under Labour

Dr Cullen has today confirmed what every household already knows: They are no better off after half a decade of Labour, said ACT Leader Rodney Hide.

Mr Hide asked Dr Cullen in the House today: By how much has the average household income after tax increased in the four years since the 1999/2000 financial year, and what does this after-tax increase equate to when adjusted for inflation?

Dr Cullen answered "10.1 percent the same as the increase in CPI."

"Dr Cullen's answer could not point to any gains. Rather he has squeezed households to the point where they are actually going backwards.

"His own reworked figures from Treasury show that the average household is no better off in real terms than they were four years ago and that in fact the same average household is having to contribute an extra $3,200 in real terms to the Government.

"Dr Cullen today admitted that `Treasury figures based on a variety of different sources suggest relatively low growth in real after-tax household income.'"

Mr Hide earlier asked the Parliamentary Library to analyse the Treasury's figures. The results are available on request

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