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Workers pay high price for Labour's inaction

Don Brash MP National Party Leader

25 January 2006

Workers pay high price for Labour's inaction

National Party Leader Don Brash says workers are now starting to pay the price for Labour's ideological approach to the economy.

"Instead of growing the economy, by promoting increased productivity and high value exports, Labour has set about redistributing what we already have. This is no recipe for improved and sustainable growth.

"Helen Clark's anti-business policies have been masked by strong export prices and high net immigration post-September 11, and they will become glaringly obvious during any slowdown.

"Labour has been in office now for six years during a time of good export prices and has piled on taxes, stubbornly refused to address compliance costs or change the RMA.

"Indeed, proposed changes to the RMA and the review of business tax are nothing more than a belated effort to control the collateral damage Labour collected during a tight election race.

"If Helen Clark wanted to take credit for the good times, she must also accept responsibility on behalf of her Government when the tide turns.

"The time for talking is past. Hundreds of Kiwis, many of them low skilled, have lost their jobs this week. Business confidence has plummeted and commentators are predicting more job losses to come.

"Big increases in government spending have been a significant factor in inflationary pressures, which have forced the Reserve Bank to push up interest rates - with the result that the exchange rate is putting huge pressure on companies in export industries.

"If Helen Clark wants to avoid further job losses in the export sector, she must get her own government's spending under control," says Dr Brash.

ENDS

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