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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election