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Australian budget lights the way forward

13 May 2009 Media Statement

Australian budget lights the way forward


The budget delivered by the Australian Government has provided a credible template for John Key’s Government to follow to protect Kiwi jobs and the economy, Labour Finance spokesperson David Cunliffe said.

“The challenge for the National Government now is to match it,” David Cunliffe said.

“The Australian budget has delivered a stimulus package which focuses on a number of measures to stimulate growth such as infrastructure spending, R&D investment, tax breaks for small businesses and jobs training.

“In contrast, John Key and Bill English’s stimulus is so far centred almost exclusively on a package of tax cuts for higher income earners who are more likely to save or pay off debt. It’s clear that will not provide the kick our economy needs.

David Cunliffe said the bold moves by the Australian Treasurer to increase investment in clean energy initiatives, R&D, infrastructure and education show a strong focus on job retention and creation.

“The Australian Government believes its approach will support up to 210,000 jobs. It’s targeted at those in most need of support, but will have a short-lived impact on the budget balance,” David Cunliffe said.

“Bill English must take a similar path in the upcoming budget. On May 28 National must deliver a jobs budget.

“In the three months to March 24,000 Kiwis lost their jobs and unemployment has reached 5% and sadly is forecast to go even higher.

“Many hardworking Kiwis face increasing uncertainty around their jobs and to date National has done little to put them at ease. The upcoming Budget must address their concerns.

“New Zealanders want real leadership that will protect and create jobs at this difficult time and prepare our economy for when we come out of it.

“The Australian Government has lit the path forward with its jobs focussed budget. John Key and his Government must now follow suit,” David Cunliffe said.

ENDS

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