Government Plan for Our Economy Does Not Stack Up

The plan for our economy announced by the Government this morning is a huge disappointment, Progressive leader Jim Anderton says.

“National thinks all we need to do to catch up to Australia is increase the price of a loaf of bread, increase the price of a litre of milk, increase the price of a litre of petrol, and put up the price of electricity,” Jim Anderton said.

“This from a prime minister who said before the election, “if National is elected and does a ‘half decent job’ at growing the economy, then increasing GST and the top tax rate will not be necessary.

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“New Zealand needs higher incomes not higher costs.

“The National Government has no plan for jobs, and no plan to increase wages.

“National slashed the R&D tax credit and abolished the two billion dollar Fast Forward fund. When it now says we need more science - those are just words. Its actions tell a different story.

Last year John Key told the Wall Street Journal, “We can use this recession to transform the economy to make us stronger so that when the world starts growing again we can be running faster than other countries we compete with.”

"His plan today will not transform the economy and make us stronger? How does putting up GST make us run faster than countries we compete with?

"Changing the tax system is not economic change. Compare that pathetic response to the Labour-Progressive government’s R&D tax credit of around $350 million, the largest ever company tax cut, a huge programme of personal tax cuts particularly for low to middle income earners and the largest ever investment in science in New Zealand.

“It just doesn’t stack up,” Jim Anderton said in Parliament.

ENDS

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