Bill English MP
National Party Finance Spokesman

7 May 2007

Cullen’s Budget under pressure from pay claims

Michael Cullen needs to outline in his Budget exactly how Labour plans to deal with the widespread and significant pay claims coming from the public sector, says National Party Finance spokesman Bill English.

Pay figures out today from Statistics New Zealand show that public sector pay rises have substantially outstripped those in the private sector for the 22nd straight quarter.

“Expectations are high and Dr Cullen may be tempted to cave in to large claims and leave the next government to pay the bills,“ says Mr English.

The Government has more than 20 pay negotiations to settle this year, including the large claim by the teachers, who have already signalled they will chase significant pay increases.

“Households and businesses will tighten their belts as high interest rates bite.

“Dr Cullen should focus on value for money and more services for the extra spending.

“Public sector employees will get a head start over the private sector this year because they will benefit more than any other group from tax incentives for Kiwisaver.”

ENDS

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