New Zealand National Party

Media Release

19 July 2017

Labour would borrow $7b more and achieve little

The Labour Party's fiscal policy reveals they want to borrow $7.2 billion more than the Government over the next four years while still cancelling tax threshold changes for low and middle income earners, National Party Campaign Chair Steven Joyce says.

"It's a classic Labour tax and spend approach, but this is the wrong time to be building up debt. We need to be reducing debt now to be ready for the next rainy day,” Mr Joyce says.

Mr Joyce says Labour's spending choices are also confusing.

"They seem to be spending more and getting less. They are actually proposing to spend less new money on health next year than the Government has added this year. After all their complaints about health spending, that's surprising.

"All they've really done is add up a bunch of additional spending that governments add to the Budget every year to core public services and said, hey here's a lot of money.”

Mr Joyce says some of Labour’s other spending proposals are now looking much less than previously advertised.

"In many cases the rhetoric doesn't match up with the numbers. $200 million a year isn't going to buy much in the way of R&D tax credits, and $265 million a year isn't going to buy three years’ post schools education.

“And the most telling aspect of the whole document is they’ve managed to put out 17 pages without referencing the importance of the economy once, yet no government initiatives are possible without a strong economy.

"All in all this is a very underwhelming proposal. More debt, higher taxes for low and middle income New Zealanders, and no more spending on health. I don't know how they managed it but they simply seem to be proposing to waste more money and get very little to show for it."

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