National confirm $2 billion of cuts

National's Transport Spokesman Maurice Williamson has confirmed the party's plan to slash essential spending by $2 billion.

Williamson says $2 billion for transport should not come from excise duty, but from the so-called surplus. This comprises:

$1.3 billion in capital expenditure for hospitals, transport and prisons, $1.7 billion for loans to students and District Health Boards, $1.9 billion for New Zealand Superannuation, $1.2 billion on the balance sheets of SOEs and Crown entities, $0.8 billion of revaluation changes, and; $520 million to lower debt.

Cash deficits in 2005-06 and 2006-07 of around $700 million and $1.55 billion respectively are forecast.

"Williamson say's this is where the National party will find $2 billion. He needs to spell out what he's going to cut to find it. Is National planning to dump the Super fund after all, or will they go for cuts to health, education or in law and order?" says Transport Minister, Pete Hodgson.

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