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Key finally gets it

31 March 2005 Media Statement

Key finally gets it

“John Key has finally woken up to the point I made in the December Economic and Fiscal Update: that the rate of debt reduction is flattening and there is little room for large new initiatives, including tax cuts,” Finance Minister Michael Cullen said today.

Dr Cullen was responding to a statement from Mr Key suggesting that the
government is having to wind back new spending in the coming budget to bring it into line with long-term debt commitments.

“This budget will commit far more resources to health and education than National ever did but the government is considering pushing out some capital spending to avoid putting excessive pressure on the construction sector.

“Mr Key is panicking as he realises all the promises National is making will make it impossible to produce an alternative budget before the election which is in any way credible,” Dr Cullen said.


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