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No tax cuts at expense of public services

26 July 2006

No tax cuts at expense of public services, says union

“There must not be cuts in personal or business rates at the expense of important public services like health, education, infrastructure and social services,” said Brenda Pilott, National Secretary of the Public Service Association.

This is in response to signals from Finance Minister Michael Cullen today that the government may consider tax cuts.

The PSA represents over 54,000 public service workers in central and local government, the health sector and in community services.

“The government must not give tax cuts with one hand and take away important public services with the other.”

“If public services suffer as a result of tax cuts, it is New Zealand taxpayers who will pay the price in reduced services and more user charges.”

“Improving productivity is the path to go down to ensure value for money from investment in public services and ongoing economic growth,” said Brenda Pilott. “A high wage, high skill, high productivity economy is the recipe for New Zealand’s future.”

“This government has made necessary re-investments in public services after the disastrous slash and burn approach of the National Government throughout the 1990s.”

“Any tax cuts which undermine the ability of frontline staff like social workers, prison officers and border protection staff to do their jobs properly are not affordable for New Zealand or New Zealanders,” said Brenda Pilott.

ENDS


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