7 March 2007

English and Key at odds over fiscal policy

National's co-leaders are once again divided over fiscal policy, Finance Minister Michael Cullen said today.

"Bill English has attacked government spending and the business tax cuts, blaming them for fuelling inflation.

"His prescription is clearly to do away with the business tax package and slash government spending. He wants to run a much tighter fiscal policy – that means bigger surpluses," said Dr Cullen.

"Meanwhile, his co-leader is going around the country promising the complete opposite.

"John Key is quite happy to continue promising large personal tax cuts and spending increases – substantially looser fiscal policy. Just yesterday he was promising to give $1.2 billion of carbon credits to foresters. And half his caucus wants even more spending on roads, health and other areas.

"Bill English's comments again damage the carefully orchestrated appearance
of unity in National's new leadership team.

"Mr English has also got his facts wrong again. The business tax package is worth $1 billion a year, not $2 billion. I am surprised he regards this as expendable when National has spent the last eight years demanding a company tax cut," Dr Cullen concluded.

ENDS

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