John Key MP National Party Finance Spokesman

20 August 2005

Economists back Nats on inflation

"Labour's hysterical ranting about the inflationary effects of tax cuts has been shown to be nothing more than hot air from a desperate and dying administration," says National Party Finance spokesman John Key.

"Some of the country's top economists now agree that fair tax relief and incentives for hard work and enterprise will not force up interest rates."

Mr Key says he is grateful for the independent analysis of the National Party's broad fiscal strategy by Deutsche Bank chief economist Ulf Schoefisch, Westpac chief economist Brendan O'Donovan and Bank of New Zealand research head Stephen Toplis.

"National welcomes this independent analysis, which has been done by those who know what they're talking about, unlike Labour."

He is referring to Labour's recent attempt to bully commentators who were critical of the student loans election pledge.

"This makes a complete mockery of the ill-informed claims from Michael Cullen and Helen Clark that National's plan for fair tax relief will fuel inflation and interest rate increases."

National releases its full tax policy on Monday.

ENDS

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