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National’s Child Plan Smart, Universal Welfare Irresponsible

“National’s plan for children is good policy, but it must be made affordable,” says ACT Leader David Seymour

“The social investment approach and enhanced screening for newborns is smart, but universal welfare is irresponsible in the current climate.

"It’s important to support kids – but the best way we can support future generations is to lessen their debt burden.

“A universal welfare payment will mean even millionaires will receive a handout from Government. We have to be smarter about how we target money to where it is most needed.

“What we need right now is an honest conversation about debt.

“Big spending promises are irresponsible in a climate of too much debt already. Labour are wasting enough money as it is without National competing with them.

“Following Covid-19 the Government has committed to borrowing $140 billion on top of the $60 billion debt it had pre-Covid. For many families, their biggest debt will be the one the Government took on for them. The Government has left New Zealanders with a debt equivalent to having every family max out their credit cards.

“By the time students currently at intermediate and high school start paying tax, we’ll be spending more on interest repayments than education. Treasury forecasts the interest on the debt will be $13 billion by 2030, or $13,000 every year for a family of five.

“Only ACT has a fully costed plan for economic recovery, which keeps the debt low, cuts taxes, and gets the country back to surplus, while keeping Kiwis in work.

“We need to get real about the financial situation we find ourselves in. It’s time for political parties to think about the future and stop making unaffordable promises just because there’s an election coming up. ACT will keep the other parties honest.”

ACT’s fully costed plan can be found here

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