28 July 2008

NZ can't afford National's spending recklessness

John Key's reversal on Working For families is welcome, but it means National can't meet its tax cut promises without borrowing and pushing inflation up, Progressive Party leader Jim Anderton said today.

"Working For Families has helped to lift more children out of poverty than at any time since the Great Depression. It has given relief to thousands of families that needed it most. It is therefore pleasing National has recognised it was wrong to vote against Working For Families and to call Working For Families a welfare scheme.

"But National's reversal on Working For families make its tax cut plan unaffordable.

"National has promised everyone tax cuts of at least $50 a week. It can't deliver that without massive increases in government debt.

"That would mean today's children will receive the bill for National's spending at a time in their lives when they can least afford it.

"And it would mean a huge inflationary surge. Prices would go up. Interest rates would go up, creating stress for homeowners and businesses. What's good about that?

"New Zealand can't afford National's wild borrow and spend recklessness.

"We've been through it all before. Anyone who thinks that it's 'time for a change' should ask themselves 'change to what'? Borrow, spend, and hope are old, failed policies, not new ones," Jim Anderton said.

ENDS

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