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Report shows Govt needs to learn fiscal discipline

John Key MP National Party Finance Spokesman

27 June 2006

Report shows Govt needs to learn fiscal discipline

Treasury's report on long-term fiscal trends out today shows the need to prepare now so we have a stronger economy in the future, says National Finance spokesman John Key.

"Contrary to the assertions made by Michael Cullen, the long term gains from the productivity enhancing tax cuts advocated by National and by Treasury are an important feature of long-term growth," says Mr Key.

"The report shows that long-term fiscal pressures will show up in important areas of spending like health.

"This clearly show the need for the Government to manage its expenses more wisely than they are doing now, and to drive greater productivity from each taxpayer dollar that they spend.

"This Government has been spending like there's no tomorrow, yet tomorrow's coming up fast.

"No wonder Treasury is increasing the intensity with which it is advising Ministers they are on an unsustainable spending track."

ENDS

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