Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Shipley heads into fiscal meltdown

Labour
2000 web site
"Jenny Shipley's reckless $800 million tax cut promise risks taking New Zealand into fiscal meltdown," Labour finance spokesperson Michael Cullen said today.

"The $800 million actually represents $1.6 billion off the operating balance given Bill English's dollar for dollar pledge.

"He promised the National Party conference, and repeated in a debate with me on National Radio's Crosstalk show on July 25, that National would match every dollar spent on tax cuts with an extra dollar in social spending.

"And he said this would apply not only to the $400 million tax cut scheduled for April 1 but to any cuts National delivered in the next electoral cycle.

"His exact words in his speech to the conference were: "Over the next term of Government, for every dollar in tax reductions, we will provide for an extra dollar of expenditure on social services. This is our dollar for dollar commitment."

"There was never any suggestion that the additional spending was already provided for in Treasury base lines or referred to existing policies," Dr Cullen said.

"That means Mrs Shipley has effectively committed National to $2.4 billion; $1.2 billion in tax cuts and $1.2 billion in new spending.

"Mrs Shipley can't have it both ways. She can't commit National to such a fiscally expansionary programme and at the same time maintain that Labour cannot afford to fund its spending promises," Dr Cullen said.

"This is especially so as Labour will have at least $800 million more headroom than National in the first year - the $400 million we would expect to raise from our modest tax increase for the 5 percent of taxpayers earning more than $60,000 and the $400 million we would save by cancelling National's April 1 tax cut.

"Even more irresponsible is that Mrs Shipley is would risk plunging the country back into deficit just to save her own skin.

"It is a disgraceful vote bribe which would only line the pockets of the richest New Zealanders, all of whom have already got substantial benefit from the economic reforms initiated by her Government," Dr Cullen said.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election