Labour plans to borrow for election promises

“The real cost of Labour’s election promises have been laid bare in the latest set of accounts, made public today,” says National Party Associate Finance spokesman Bill English.

“No wonder Michael Cullen’s saying it will be a boring Budget - the numbers confirm he has already spent the lot.”

The December fiscal update shows the Clark/Peters Government will have to borrow $500 million more than it expected in 2007, and the borrowing will escalate.

“This borrowing is required to cover higher-than-expected costs of the irresponsible Student Loan promise and the mis-named Working For Families welfare package

"I recall Dr Cullen foaming at the mouth during the election campaign about borrowing to invest in significant infrastructural assets. Yet today he has confirmed that Labour will be forced to increase borrowing in order to pay for its election handouts.

“He is also borrowing at a time when he’s telling home owners to hold fire - talk about the pot calling the kettle black!

“This debt-financed spending spree will fuel inflation at great cost to mortgage holders and all taxpayers, who will be paying for Labour’s election promises,” says Mr English.

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