Clark Closes the Gaps by Making Workers Poorer

Labour may end up `closing the gaps' after all - but by making workers poorer and beneficiaries richer, ACT Social Welfare Spokesman Dr Muriel Newman said today.

"Beneficiaries' taxpayer-funded income is increased for inflation, and workers' income is not. The latest Consumer Price Index and Labour Cost statistics which show inflation increasing by 2.6 percent while wages increased by only 2.2 percent highlight the fact that working families are missing out under the Labour Government.

"On the other hand Beneficiaries who are a target voting group for Labour, can be assured that their incomes will increase every time inflation goes up. And now with Dr Cullen's relaxation of the policy targets agreement which will allow higher inflation, their future looks rosy - at the expense of working New Zealanders.

"Under Labour's socialist agenda, all working families can look forward to is an ongoing struggle to make ends meet," Dr Newman said.

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