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5% in ’05 won’t go far under high-tax Labour

08 March 2005

John Key MP - National Party Finance Spokesman

5% in ’05 won’t go far under high-tax Labour

“A 5% wage rise in the current high tax climate won’t go far, and trade unions would be better targeting Labour for tax cuts,” says National Party Finance spokesman John Key.

“Personal tax cuts would put more money in every worker’s pocket while a cut in company taxes would give room for businesses to provide more competitive salaries in light of the current skills shortage.

“According to National Party calculations, a 5% pay rise for a teacher earning $50,000 a year, supporting two kids and receiving the accommodation supplement could leave as little as $5 extra in the hand each week.

“Many union members will be shocked to discover they’re campaigning for as little as $5 a week.

“Add to that the fact that four out of five households will get nothing from Working For Families and it’s little wonder the unions flatly rejected Helen Clark’s claim that Labour’s policies would make things better.

“The National Party absolutely agrees that wage growth has stalled under Labour and we are again strongly urging the unions to take off their political blinkers.

“They should be pushing for tax cuts that would benefit all their members rather than launching another ideological crusade against business,” says Mr Key.


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