11 October 2007 Media Statement

You can’t borrow your way to prosperity

Bill English’s comments about the size of the government surplus raise questions about why he wants to sell assets and increase doctors fees, Progressive leader Jim Anderton says.

“Why does National need to sell assets and increase doctors’ fees if the surplus is so big, as Bill English acknowledges it is?

“National has announced two policies: Selling assets and increasing doctors’ fees. But if the operating surplus is too high, why would the government need to sell assets? Why would it need to reduce health care subsidies?

“A lower surplus would mean we would have to pay more to service debt. Bill English wants to reduce our ability to service debt by selling assets that contribute to the government’s bottom line. National’s economic policy is to borrow today and send the bill to our children.

“But we can’t borrow our way to prosperity. National tried that once and it ended in disaster. Now National wants to take us back to its failed policies of the past,” Jim Anderton said.

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