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

 


ACT joins National for race into the red

24 May 2005

ACT joins National for race into the red

“Act and National are competing against each other to drag New Zealand back into the borrow and hope politics of Muldoonism,” Finance Minister Michael Cullen said today of Act’s tax policy.

“Both parties would have to fund their tax policies from a mixture of spending cuts and borrowing and the bill would go to the New Zealand public.

“The highest earners might get out more than they put in, but those on low and middle incomes would end up worse off and New Zealand would be a far less safe and attractive place to live.

“Ordinary New Zealanders would pay through reduced education, health, law and order and other public services at one end and through higher mortgage and interest rate costs at the other.

“Make no mistake, the effect of tax cuts of the order Act and National are speaking would be highly inflationary and would require a response from the Reserve Bank,” Dr Cullen said.

He also dismissed Act’s spending caps proposal as “populist nonsense.”

“Both National and Act are misleading when they quote total Crown expenditure as this includes Air New Zealand, Kiwi Bank and all the Crown owned agencies. The relevant measure is core Crown spending which has in fact reduced as a proportion of GDP since 1999.”

Dr Cullen said the consequential costs of servicing the growing borrowing that would be required to finance Act’s tax cut programme would lead to at least a 50 per cent increase in government debt within five years without slashing expenditure.

“But already we see the first big cut. The New Zealand Superannuation Fund will go. This will have to mean big cuts to NZ Super sooner or later. And even without the Fund contributions, debt would spiral upwards,” Dr Cullen said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news