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Alliance would force absurd petrol price increases

“If Jim Anderton got his way, New Zealand families would be lumped with significant petrol price increases. Prices for petrol and other everyday goods would increase at least 5% if Alliance’s crazy tariff policy was implemented,” said Ilam MP Gerry Brownlee today.

Mr Brownlee’s comments follow Shell New Zealand’s announcement that petrol will increase three cents a litre from tonight. Shell said continued pressure on international oil prices forced the increase.

“Mr Anderton wouldn’t be satisfied with Labour’s costly plan of freezing tariffs for five years. He would muster all his bullying skills to force a Labour-led Government to implement Alliance’s 5% tariff on all goods and services, except those imported from Australia. This would prove disastrous!”

Recent independent research found that reducing tariffs in just four sectors – cars, household appliances, clothing and footwear – has given a three-person New Zealand household an extra $22 per week. By 2010, the gains could be as high as $42 per week.

“Under Anderton, the scrapping of the Tariff (Zero Duty) Amendment Act will see the cost of living for families soar and jobs evaporate, as businesses lose competitiveness. National is progressively dismantling import tariffs because they act as a tax on businesses and families.”

Mr Brownlee said National wants to see petrol prices as low as possible, and sees competition as a way to ensure this happens.

“National is committed to eliminating all import tariffs and maintaining competition within the petrol industry. This will keep prices to a minimum and improve the cost of living for all New Zealand families.”

ENDS

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