Media statement
For immediate release
Thursday, 23 October 2008

Dunne welcomes interest rate cut

UnitedFuture leader Peter Dunne has welcomed Reserve Bank Governor Alan Bollard’s decision to lower the official cash rate by 1% today.

"This is welcome relief for families suffering from rising household expenditure, high fuel and electricity prices, and record inflation.

"Today’s announcement will be welcome news to the 130 000 New Zealand homeowners facing the reality of owing more than what their house is worth.

"The ability to pay off their mortgage faster will hopefully prevent many families from falling into the negative equity spiral from which it is difficult to recover.

"Exporters will also be encouraged by today’s announcement; however I expect the cost of imported goods to rise, making tax relief for middle New Zealand a priority.

"UnitedFuture’s tax package provides the necessary stimulus and relief to help Kiwi families through these tough times. We will set personal tax rates at 10% up to $12,000; 20% between $12,001 and $38,000; and 30% above $38,000.”

"It is also UnitedFuture policy to introduce income splitting for parents with dependent children.

"While I strongly disagree with recent comments from some political parties demanding that the Reserve Bank lower the official cash rate, it is obvious with other nations also dropping their interest rates, further cuts will be needed in the future," said Mr Dunne.

ENDS

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