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Greens' working policy just won’t work

Greens' working policy just won’t work

The Greens' so-called working policy announcement today shows exactly how little they know about how the real world works, National's Economic Development spokesman Steven Joyce says.

"Their new policy doesn't wash on about three levels," Mr Joyce says.

"First, dramatically pushing up wage rates at the stroke of a pen would costs thousands and thousands of jobs, as business everywhere would lay off staff and not take on new staff.

"Secondly, the stratospheric levels of government spending now proposed by the Greens, Labour and the Dotcom party would ramp up interest rates for every New Zealander and stall the economy. This latest $1.5 billion over four years would take the Greens growing tally of new spending up to almost $12 billion over the next four years, to go with Labour's $18 billion and Dotcom's $8.5 billion and counting.

"Our just-released TV advertisement on the left's spending can't even keep up with the wild promises.

"Thirdly, their suggestion that somehow ramping up private sector wages will generate bucket loads of new tax revenue to offset the cost of public sector wage increases is fanciful in the extreme.

"This new theory, which would do the Social Creditors proud, doesn't take into account reductions in jobs, investment, and company tax that would immediately follow - which would offset any increased tax take. If they really think it would work, why not knock everyone through to $30 an hour, and then the tax department could really make some money.

"The Greens are trying to suggest that they have moved into the mainstream economically. Well, today's wages theory puts the lie to that.

"The choice in this election gets starker every day. Only National's responsible economic plan will continue to grow investment, jobs, and incomes and keep New Zealand heading in the right direction. The alternative would simply stall New Zealand and destroy jobs."

ends

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