Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Nat's cuts will increase debt, poverty

8 October 2008

Nat's cuts will increase debt, poverty

Green Party Co-Leaders have called National's proposed tax a 'fake free lunch' which will increase New Zealand's debt and the gap between rich and poor, and suck resources out of research and science.

"Key pretends he has found a free lunch and will not increase borrowing, but this is a sham.

"National's proposals will increase New Zealand's debt, increase the gap between high and low incomes, make families with kids relatively worse off than others, and decimate funding for science, research and technology," Jeanette Fitzsimons and Dr Russel Norman say in their joint statement.

"Reducing saving by cutting KiwiSaver is the same as increasing debt. It won't show on the Government's balance sheet, because Key has swapped Government debt for private debt. Lower savings will show up on households' balance sheets as increased private debt, which is already too high," Ms Fitzsimons says.

"Funding tax cuts for people on higher incomes out of the science budget mortgages the future even more.

"A strong sustainable economy will be based on good science and research. They are currently underfunded. National wants to strip them even further.

"It is also a flip flop. Last Thursday, speaking to agricultural scientists in Hamilton, National announced that it would scrap the $700m Fast Forward fund for agricultural research and move some of the R&D tax credit for business to fund science directly.

"Now they plan to take the whole tax credit - $208m this year, and rising - for personal tax cuts. So under National, we will see our brightest scientists leaving for overseas as there will be no funding here for any new projects - and our economy will be robbed of the information needed to adapt to a quickly changing world.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"Most of the benefit of Key's proposed tax cuts will be felt by those on above average incomes. Even a one cent drop in the top rate is a big windfall for those earning half a million a year. Meanwhile families earning less than $14,000 will get nothing," Dr Norman says.

"It's all very back-to-the-'90s.

"Borrowing for more new roads will make our transport crisis worse, putting the country in debt for roads we don't need and won't be able to afford to drive on.

"In contrast, the Green Party would invest in infrastructure that will protect us from rising prices in the future - fixing up our rail system, improving public transport and making more affordable homes available."


© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On How Climate Change Threatens Cricket‘s Future

Well that didn’t last long, did it? Mere days after taking on what he called the “awesome responsibility” of being Prime Minister, Christopher Luxon has started blaming everyone else and complaining that he's inherited “economic vandalism on an unprecedented scale” - which is how most of us would describe his own coalition agreements, 100-Day Plan, and backdated $3 billion handout to landlords... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.