Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cullen's GDP claims ludicrous, says Key

22 December 2004

Cullen's GDP claims ludicrous, says Key

National Party Finance spokesman John Key describes Finance Minister Michael Cullen's comments today on the September quarter GDP statistics as ludicrous.

"His suggestion that GDP growth over the past five years has translated to a 15% increase in real income per person is so obviously out of step with official figures that you have to wonder whether he actually understands the statistics he is reporting," Mr Key says.

"His own figures, supplied by the Treasury, show that household incomes, when adjusted for inflation and tax, have remained static over the past five years.

Treasury figures show that the average after-tax household income has increased from $49,050 to $54,020, or an increase of 10.1% since 1999/2000.

"But inflation has risen 10.2% over the same period, so, there was no increase in real terms at all," Mr Key says.

"What has happened is that profitability has expanded through the current debt-fuelled property and consumption boom, with incomes rising only slowly, and household debt rising from 100% to over 130% of income over the past five years.

"The size of government has increased, and the slice of tax taken by the Government has increased.

"The only thing that hasn't increased are real household incomes, and Dr Cullen should stop putting spurious figures to pretend otherwise," Mr Key says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>


BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>


Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>


Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>


State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>


Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>





Featured InfoPages