OECD report warns about Labour’s approach

Rodney Hide Tuesday, 5 July 2005 Press Releases - Economy

The Government has ‘cherry-picked’ the positives from the OECD report, claiming credit for the economic good-times, which the OECD had previously attributed to the reforms of the 1980s and 1990s, ACT Leader Rodney Hide said today.

“The OECD report actually contains a number of criticisms of the Labour Government’s policies.

“It confirms why New Zealanders want a change and that the only way to achieve that change is to Party Vote ACT.

“The report blames Labour’s employment laws for reducing labour market flexibility and adding to labour costs. It recommends ACT’s policy of trial periods where employers are exempt from dismissal provisions. This would encourage hiring marginalised groups and older persons.

“The report also says there needs to be a greater focus on education results and nationwide testing at the beginning and the end of each year.

“The Government’s much trumpeted 'Working for Families' package is condemned for high effective marginal tax rates (which see families keep just $1 for every $10 earned).

“And the report also slams the fact that extra spending has not been achieved by cutting out poor quality spending. It suggests the Government should commit to an ongoing review process to identify programmes which do not contribute enough in relation to the taxes raised to fund them.

"It also criticises the competition in the electricity sector and says there needs to be clear welfare reform, to ensure people aren’t ripping off the system,” Mr Hide said.

ENDS

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