11 March 2005

John Key MP - National Party Finance Spokesman

Workers keep paying for Labour’s mismanagement

National Party Finance spokesman John Key says workers and homeowners can blame Michael Cullen and the ‘tax and spend’ Labour Government for the rising costs of borrowing and the stagnation of Kiwi incomes.

“The numbers out today show the Labour Government has had an 8.5% pay rise this year, yet it steadfastly refuses to budge on any suggestion of tax relief for the rest of us.”

Mr Key is commenting on Treasury figures showing the tax take in the seven months to January 31st was $2.1 billion higher than the same period last year.

“Instead of providing tax incentives, instead of stimulating growth and productivity, instead of improving the capacity of the economy and helping to boost take home pay packets, Dr Cullen continues to employ Labour’s model of ‘redistribution’ at the expense of those who work.

“I agree with union members who have suggested that yesterday’s interest rate announcement will have neutralised any wage gains for many working homeowners paying off a mortgage.

“Even if they were successful in winning pay rises, a good number of those union members will be left out of pocket after paying higher mortgage costs and after Labour has extracted its pound of flesh in taxes and levies. “Little wonder there is again a rising tide of Kiwis heading to Australia for good, putting more pressure on employers hunting for skilled staff.

“With predictions of a ‘hard landing’ next year, Dr Cullen and Labour can no longer afford to coast on the coat tails of a buoyant economy,” says Mr Key.

ENDS

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