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Collins: Blame Labour For Your Rising Mortgage

Judith Collins Family Spokeswoman
28 April 2005

Blame Labour for your rising mortgage

The Working for Families package set up by the Labour Government doesn't seem to be living up to its name.

Increasing numbers of economists are saying interest rates are rising in advance of Labour's big spending on the Working for Families redistribution package. Misdirected spending on Labour's ballooning bureaucracy is also fuelling the increase. Treasury has warned Labour about the size of its bureaucracy, saying the wasted spending in areas of the state sector is unsustainable.

Unless accompanied by gains in productivity, increased spending will result in rising interest rates. A transfer of money from hard working New Zealanders to Labour's welfare programme does nothing for productivity. It is hardly motivating to be working for a government that isn't prepared to give you a break.

Homeowners, credit card holders and other borrowers will be paying for Labour's election priorities.

ANZ chief economist John McDermott has been reported as saying that although the Working for Families package only took effect this month, the economic impact of it had already been factored in by the Reserve Bank in the markets.

In the same report, Deutsche Bank chief economist Ulf Schoefisch questioned the timing. He said: ".the timing is pretty risky. It would perhaps have been better to delay it somewhat."

Labour is sacrificing interest rates and the economy in order to improve its election chances. Most home-owning New Zealanders won't thank them for that by the end of the year.

Dysfunctional Families Commission Breaks Up The Families Commission which has $9 million of taxpayers' money to play with has shown just how hard it is for families to stay together even when money is "not a problem".

After only 3 months in the job, Chief Executive, Claire Austin, has called it quits - just as the big spending commission has started its pre-election advertising on a survey. If anyone wants to take some time finding out how to spend $9 million annually, then take a quick look at the survey form at http://www.familiescommission.govt.nz/

Unfortunately, you will not find answers to the following questions:

1. Why Claire Austin left the Families Commission?

2. Why Claire Austin was given a 3 year contract and only required to work for 3 months?

3. Was Claire Austin embarrassed at the taxpayers' money being spent on photo opportunities for the Labour Government, so close to an election?

4. How much was Claire Austin paid to leave?

5. What has the Families Commission achieved in almost a year with your $9 million?

Steve Maharey, the Minister in charge, does not want to know. Keeping families functioning and healthy is a tough business. It is certainly too tough for a bunch of politically correct "experts". I say, give the money back to the families that are functioning, looking after their own children, paying their way and raising responsible adults.

This newsletter is available on my website http://www.judithcollins.co.nz/.


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