Bill English MP
National Party Finance Spokesman

11 September 2008

Scandal-mired Labour missing economic action

National Party Finance spokesman Bill English says the good news is the bad news when it comes to the interest rate cuts announced by the Reserve Bank Governor this morning.

“The interest rate reduction signals a deteriorating outlook for the economy through 2008-2009.

“The Reserve Bank says that over the next few years the economy will experience ‘tight monetary conditions, persistent underlying inflation with a series of cost shocks’.

“Add to this picture declining house prices and cash-flow problems for businesses, and the outlook is concerning.

“It’s time for the government to knuckle down and concentrate on policy that will lift our longer-term growth prospects.

“In the face of the need for action, the Labour Government is mired in scandal and preoccupied with political survival.

“It is crucial that New Zealand now build a strong platform to achieve future growth and prosperity. National’s five point plan will achieve that.”

• We will have an ongoing programme of personal tax cuts. We will put the right incentives in place to encourage people to work and save and get ahead under their own steam. Boosting after-tax wages will help stem the flow of Kiwis overseas.

• We will bring discipline to government spending. The government should be just as careful with your tax dollars as your household is with the weekly budget. National will direct spending towards frontline services like doctors, nurses, teachers, and police.

• We will stop the massive rise in bureaucracy and red tape that Labour has encouraged. We will cap the number of bureaucrats in the core public service, and we will reform the Resource Management Act and the Building Act.

• We will have an unwavering focus on lifting education standards. We will introduce National Education Standards in primary and intermediate schools to improve literacy and numeracy. We will boost trades in schools and encourage teenagers to get the skills they need.

• We will invest in infrastructure to help this country grow. We have a $1.5 billion plan to bring ultra-fast broadband to businesses, schools, hospitals, and homes. And we will substantially boost investment in roads, electricity, and water.

ENDS

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