15 March 2005

John Key MP National Party Finance Spokesman

Bulging state sector needs better oversight

National Party Finance spokesman John Key says New Zealand needs the discipline of a National Government to haul in mis-directed and wasteful spending, given current inflationary pressures and rising interest rates.

“While the private sector is are under pressure from the high exchange rate, rising interest rates, a tight labour market, and calls for 5% pay rises, Labour continues to bury its head in the sand with its ’big government’ approach to taxation and spending.

“The latest set of job ads numbers provides a good example of Labour’s misguided priorities. They confirm a growing government workforce is behind a strong set of figures in Wellington.

“Labour’s on a drive to recruit even more policy wonks at a time when there are now more than 300,000 government workers nationally.

“Last year’s budget also indicated that a further 6500 government jobs would be created by Labour in the next four years, excluding doctors, nurses and university teachers.

“Bloated government departments are also gobbling up highly sought-after commercial office space in Wellington and driving up prices for everyone else.

“Only a seriously out-of-touch Labour Government would be looking to further expand an already out of control state sector at a time when the Reserve Bank is concerned about inflationary pressures.

“Ordinary New Zealanders will end up paying for it through higher mortgage rates, at a time when floating mortgage rates are already above 9%.

“National doesn’t believe that throwing more people at a problem is necessarily the solution. Instead we will focus on extracting value for taxpayers’ money in the administration of central government and the administration of State Owned Enterprises,” says Mr Key.

ENDS

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