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English manipulating expenditure numbers a "farce"

9 December 2009
Media Statement

English manipulating expenditure numbers a “farce”

Treasury confirmed at today’s Finance and Expenditure select committee meeting that government expenditure as a percentage of GDP actually fell between 1999 and 2008, says Labour Finance spokesperson David Cunliffe.

David Cunliffe said Bill English’s most recent attacks on Labour’s spending while in government had been exposed as a “farce”.

“Bill English has consistently overstated the increase in government expenditure. He claimed that baseline budget spending has increased substantially since 2005, but today was forced to admit this included the 2009-10 financial year for which National has been responsible.

“He ignored the effect of inflation by using nominal dollars to justify his discredited figures, ignored increases in GDP, and he was today forced to admit at select committee that government spending fell from 32.8 percent of GDP in 1999 to 31.8 percent in 2008.

“Finally he was forced to admit today that half last year’s increase in spending was attributable to the recession and accounting changes, and that the rest was largely attributable to normal cost growth in health, education and law and order.

“When asked which of these increases he would have liked to be able to cut, Bill English was unable to provide any answer,” David Cunliffe said.

“What he did manage to foreshadow was substantial budget cuts in 2010, confirming worst fears that the Don Brash 2025 Taskforce is simply a stalking horse for National’s real intentions.

“Bill English has been caught out selectively and unfairly manipulating government expenditure figures. As with other recent examples of his judgment lapsing, this is not the standard of integrity Kiwis expect from a Minister of Finance.”

ENDS

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