Social wage absolutely no comfort to households

Thursday 9 Dec 2004

Rodney Hide - Press Releases - Economy

Dr Cullen's spin that the average New Zealand household can take much satisfaction from the fact that "the social wage has increased" is laughable, ACT Leader Rodney Hide today.

"The reality is the average household is no better off in real terms than it was when Labour came to power. In fact the Government is taking nearly $3,000 extra in real terms out of each household."

On Tuesday in the House, Dr Cullen confirmed that in real terms the average household net income after direct taxation is no better than it was four years ago.

Today in the House Dr Cullen confirmed that the average household in real terms actually now pays "$2,910" more in direct and indirect taxes than was the case in the 1999/2000 financial year.

"The average household's ability to make ends meet has eroded substantially with this greedy Government increasing taxes every year.

"It's an insult that Dr Cullen now implies no one's too worried because his so-called social wage has increased. He's talking about our education and healthcare services improving and he's dreaming. The reality is thousands of New Zealanders continue to wait and die on the waiting lists and our education standards are at an all-time low.

"Kiwis will be perplexed to hear Dr Cullen's new excuse for stagnant net incomes. He says forget what you're being paid, look at your social wage! The reality is Kiwis want pay rises from tax cuts. They are sick of being squeezed," Mr Hide said.

ENDS

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