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Govt short-changes NZers on April 1

31 March 2000

Govt short-changes NZers on April 1

The Government's short-changing New Zealanders with its April 1 changes, Opposition Leader Jenny Shipley said today.

"The feel-good factor from some of the April 1 changes won't last.

"Some people might wake up on Sunday morning thinking it's good we're making people pay more tax, letting students borrow without paying any interest and stopping private companies from delivering ACC cover.

"If National had been in Office all New Zealanders in full time jobs would be getting more in their pay packets from tax cuts.

"Instead in four short months Labour's brought in three new taxes - the personal tax hike, super withdrawal tax and fringe benefit tax - breaking their election promise of only one new tax.

"In a year or so I predict people won't be feeling so good when the changes take their toll on families and businesses.

"We'll be waking up wondering why on earth as a nation wanting to encourage success, innovation and performance we're penalising people for earning more.

"We'll be dealing with the headaches and extra cost of doing business due to the three new taxes.

"We'll question whether it really was the right thing to remove the benefits small business received from safer workplaces and lower costs thanks to private companies offering ACC cover.

"We'll have that gut feeling we shouldn't have let young people get themselves into debt up to the eyeballs with free money.

"They might have sorted out pensions for today's retired - but they've done nothing to give New Zealanders certainty about what's going to happen to pensions in the future.

"The Government has put short term populism ahead of New Zealand's long term interests. We'll pay the price as businesses get bogged down in complying with tax changes, dealing with the tired old ACC and more importantly people being punished for wanting to be successful and earning more."

Ends

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