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Bondi Budget bad for New Zealand

Don Brash MP National Party Leader

18 May 2006

Bondi Budget bad for New Zealand

The Labour Government's failure to cut taxes in the Budget today shows it does not understand why growth is important - and nor does it seem to care - says National Party Leader Don Brash.

"Helen Clark and Michael Cullen believe there is a place for tax cuts - it's called Australia," says Dr Brash.

"Kiwis cannot trust Helen Clark and Michael Cullen - they claim there isn't room for lower taxes when there's an $8.5 billion surplus forecast for 2005-06.

"The Budget does nothing for tax rates - and nothing for growth. And it does nothing to address waste in spending by government agencies.

"In fact, it does virtually nothing we didn't already know they were going to do, and simply bundles existing announcements up under fancy headings that mean nothing.

"Helen Clark came to office in 1999 with great fanfare promising to lift New Zealand to the top half of the OECD within a decade. Today we have not moved even one place up the rankings.

"Meanwhile, countries like Australia are steaming ahead, and last week the Australian Government offered $45 billion of new tax cuts. This represents a massive raid on our best and brightest.

"This is the Brain Drain Budget; the Bondi Budget. Tragically, we are now set to lose even more skilled people across the Tasman.

"Instead of boosting New Zealand's capacity to grow, the Budget focuses on redistributing what we currently have.

"Growth is important because richer nations can afford better health and education services, and better environmental standards.

"National, in government, would have been introducing tax cuts to provide the incentive for Kiwis to get ahead under their own steam. Instead, Helen Clark and Michael Cullen want your grandchildren to be cheering for the Wallabies," says Dr Brash.

ENDS


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