John Key MP
National Party Finance Spokesman

04 November 2005

Crown accounts confirm bulging public sector

National Party Finance spokesman John Key says the Government’s overflowing coffers are helping to disguise a spending blow-out in the public sector.

“Little wonder Michael Cullen is proposing a razor gang, when personnel costs are rising as fast as they are.”

Mr Key is referring to Crown accounts released today which show government personnel costs are $365 million or 11% higher than the same period last year. Some of the rise is due to increased pension costs.

Tax revenue is up by $1 billion on the same period last year, up 9.3%.

“The Government continues to take more tax than it needs and personnel costs are rising at an even faster rate than the tax take,” says Mr Key.

“National was up front during the election campaign about its intention to find savings by reducing the bureaucracy - Labour was not.

“Union leaders should now be questioning their support for a Government that has operated in such a deceptive way,” says Mr Key.

ENDS

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