Hon Dr Michael Cullen
Minister of Finance

17 September 2007 Media Statement

National Party policy chaos continues

The National Party’s fiscal policy has continued down its chaotic path today with John Key calling for a significant loosening of fiscal policy after repeated calls from Finance Spokesman Bill English for a significant tightening of fiscal policy, Finance Minister Michael Cullen said.

In a speech to the Road Transport Forum, John Key called for a major new borrowing programme to fund basic infrastructure like roads.

“National’s fiscal spin is starting to make John Key dizzy,” Michael Cullen said. “Even putting to one side the fact that the Labour-led government is already investing in the biggest road building programme in New Zealand’s history, Mr Key’s comments are in direct contradiction to that of his deputy, Bill English. I guess, in Mr Key’s own favourite phrase, it depends how you define ‘borrowing’.

“Mr Key’s call for a loosening of fiscal policy also ignores this morning’s comments from ANZ calling our strong fiscal policy the economy’s ‘saving grace.’

“John Key may want to take us back to the borrow and spend policies of the Muldoon administration, but this is not something most New Zealanders, including his own caucus, could ever support.

“The Labour-led government has always insisted that borrowing for tax cuts was fiscal insanity and we will continue to make that case right up to next year’s election.”

ENDS

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