Hon Trevor Mallard
Acting Minister of Finance

24 April 2007 Media Statement

English confirms big spending cuts under National

National party finance spokesman Bill English needs to come clean and tell New Zealanders exactly which services he plans to cut to please the OECD, Acting Finance Minister Trevor Mallard said today.

"Mr English attacks so called "low quality" spending in the public sector.

"Does he mean the 4000 nurses or the 3000 teachers hired since 1999?," said Trevor Mallard.

"Does he mean closing some of the $1 billion of new hospitals that this government has built?

"Does he mean cutting back on wage settlements which have helped keep so many skilled doctors, nurses and teachers in this country?

"Does he mean cutting back on the cheaper doctors visits which all New Zealanders will enjoy from 1 July?

"Does he mean cutting Working for Families which is forecast to lift 70,000 children over the income poverty threshold?

"And which roads would he not build? This government makes no apologies for the biggest road building programme in a generation. This year alone we are spending $2.1 billion on vital state highway improvements, compared to just $323 million under National in 1999.

"Is he confirming that National wants to pick up the OECD suggestions for raising the age of eligibility for superannuation and cutting back the rate relative to wages?

"It is very easy for Mr English to talk about low quality spending, but once again he fails to come up with any meaningful examples.

"Also, when asked today whether he would raise GST or introduce a capital gains tax, he refused to rule either out.

"It is good that Mr English acknowledges now is not the time for tax cuts. We have been saying that for some time. It just further shows the recklessness of the multi-billion dollar tax cuts that his leader, John Key, promised at the last election."

ENDS

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