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Helen Clark taking economic tips from CTU?

John Key MP
National Party Finance Spokesman

09 September 2005

Helen Clark taking economic tips from CTU?

“Helen Clark’s ‘hand-in-glove’ relationship with the CTU took a strange turn last night, after she used the Leader’s Debate to repeat a falsehood being spread by the union,” says National Party Finance spokesman John Key.

“Only a few hours after CTU economist Peter Conway issued a statement claiming National’s fair tax plan would push up mortgage rates, Helen Clark repeated the nonsense on TV One’s debate.”

CLARK: Well, Dr Brash ran a high interest rate policy as Reserve Bank Governor, and the borrowing that he is planning, Mark, will certainly put pressure on interest rates, and we know that if your mortgage is $100,000, one percentage-point movement and your mortgage will be up $19 a week. That’s the sort of fate he promises people. - TVNZ Leaders Debate

“She didn’t even get that right, given that Peter Conway nonsensically talked about $15 a week.

“The reality is that both of them are wrong. Their figures appear to have been made up.

“Under Labour, interest rates have gone up seven times in the past 18 months. When Don Brash was Governor of the Reserve Bank he halved interest rates.

“All the independent analysis done on National’s plan for fair tax suggests it will not be inflationary, and Dr Brash is confident interest rates will not rise.

“Frankly, Dr Brash has more experience in this area than either Helen Clark or Peter Conway, who should be asked whether he’s let his political affiliations affect his better judgment,” says Mr Key

ENDS

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