John Key MP

National Party Leader

9 July 2008

Labour out of ideas to improve economy

Labour is showing they have no significant ideas for improving the faltering economy and are spending time dodging responsibility for the issues Kiwis are facing, says National Party Leader John Key.

"Michael Cullen's only recent uttering has been a very sketchy thought to boost the construction sector by building more state houses. But he's wrong if he thinks that is going to arrest the economic slowdown.

"And Helen Clark is wrong when she says New Zealanders are angry because of a 'vexatious winter'.

"Kiwis are angry that Helen Clark's Government doesn't appear to accept any responsibility for the pressure households are under, and seems hell-bent on making it worse. It's not just about rising fuel prices, it's not just about rising food prices, it's about knowing that this Labour Government is taking no action to rein in its spending.

"The Reserve Bank has been explicit in its warnings to the Government about poorly focused spending and the impact this is having on interest rates.

"Last year, Labour deliberately sacrificed borrowers with a big spend-up that Michael Cullen agreed would keep interest rates higher for longer.

"As well as the cost of living, Labour's failure to tighten their belts and their failure to make the most of the good years by cutting taxes, are what Kiwis are annoyed at.

"Labour has drowned the economy in red tape and regulation. It has over-taxed households, stifling innovation and hard work."

Mr Key says that at a time when householders are tightening their belts, they become justifiably angry with a Government that refuses to accept the impact that its unfocused spending has had on the economy.

"Last Friday's truck protest, and the widespread public support for it, was because we have a Government that is completely detached from the current economic reality New Zealanders face.

"Only the sort of plan National is proposing - reducing taxes; being disciplined with government spending so interest rates track down, not up; halting the massive rise in head office bureaucracy and dealing to red tape; improving education standards; and investing in desperately-needed infrastructure - will see a significant upturn in our medium-term economic performance."

ENDS

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