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


Household debt levels rocket under Labour

Household debt levels rocket under Labour

Wednesday 16 Feb 2005

Rodney Hide - Press Releases - Taxation

ACT Leader Rodney Hide today revealed that the average household debt is now $75,000 - an increase of 55 percent since Labour came to power.

"Helen Clark lectures working New Zealanders about saving but the reality is household incomes are so squeezed people are struggling to meet their mortgage payments and pay off their credit cards let alone save for their retirement.

"In fact, last year New Zealanders' ability to save amounted to a negative 9.5 percent saving record - that is they spent nearly 10 percent more than what they earned.

"The average household is no better off under Labour. As well as rising prices and extra taxes wiping out any wage increases, average household debt levels have soared to be twice that of the average wage."

Official figures showed debt per household has risen from $48,396 to $75,029 in the five years to December 2004. Further, the Reserve Bank tells us collective household debt rocketed from $68,282 million to $114,232 million in the same period.

"With household debt increasing much faster than household income, the calls for across-the-board tax cuts for every hard-working New Zealander just gets louder. Boosting pay-packets is the best way to pay off debt, whether it be the mortgage, the student loan, the overdraft, or the credit card."

Mr Hide said as well as crippling people's budgets, increasing household debt was also a risk to the wider economy, as was warned in Budget 2004.

"By squeezing the life out of household budgets with unnecessarily high taxes, Dr Cullen is damaging our country's prospects.

"For the sake of our country and every one of its citizens' prosperity, New Zealanders need to be given the means to start seriously addressing their household debt levels. Tax cuts are the best way to deal to debt," said Mr Hide.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news