Bill English MP
National Party Finance Spokesman

16 August 2007

Big surplus equals election year lollynomics

National Party Finance spokesman Bill English says Michael Cullen has today signalled an election year spend-up in a speech where he has provided more limp excuses for not cutting taxes in the past eight years.

“Michael Cullen and Labour are preparing for an unprecedented spend-up in election year. It’s called lollynomics.”

Mr English is specifically referring to comments from Dr Cullen that ‘early indications are that the cash surplus for the last financial year is likely to be higher than forecast at Budget time’.

“Because Labour and Michael Cullen have so badly mismanaged the growth in our economy, Kiwi workers are continuing to be overtaxed, so Helen Clark can build up what she describes as her election year ‘kitty’.”

Mr English is also taking aim at Dr Cullen’s refusal to take any responsibility for his economic failings over the past eight years.

“According to the Finance Minister, the high interest, high inflation environment is everybody else’s fault. According to him, the larger surplus has nothing to do with the Government plundering more money than it needs from people’s pockets.

“Dr Cullen knows his decision to spend a record amount of taxpayer money at the last Budget will help keep interest rates higher for longer. He said so to his colleagues as he signed off on their $4 billion Budget overspend.

“The reality is that Labour does not trust New Zealanders to make decisions with their own money. Dr Cullen even cancelled the only personal tax cuts he has ever announced.

“New Zealanders will be deeply suspicious about Labour’s next round of election-year lollynomics. They should be.”

ENDS

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