National is committed to continuing to reduce tax for hard working New Zealanders as the economy continues to grow, Prime Minister Jenny Shipley said today.

"The tax cuts announced by the Treasurer (Bill English) in July will be passed into law after the election and come into force on 1 April 2000.

"There has been much speculation about excessive deals and demands for extra spending for Auckland over recent days in connection with the announced tax cuts.

"I want to make it clear that Government is not under pressure to progress the legislation now and will make our own decision on the timing of legislation in due course.

"The National Party is committed to seeing hard working New Zealanders receiving an increase in their weekly income."

An incoming National Government's tax cuts would put an extra $120 million per year into the pockets of Auckland families, and $400 million a year into New Zealanders' wage packets overall, said Mrs Shipley.

The tax reductions are equivalent to a 1 – 2 % pay rise for many New Zealanders earning over $9,500.

"I do not share Auckland Mayor Chris Fletcher's view that Aucklanders will not benefit from tax cuts.

"Aucklanders can be assured of National's commitment to their city, which has been demonstrated over recent months by:

 our commitment and determination to legislation to solve traffic congestion in and to build new motorways,

 our decision to build a new hospital for Auckland City and to provide increased hospital services in West and North Auckland,

 our massive increase in police numbers that sees North Shore/Waitakere region increase by 100 police; Counties/Manukau by 64 police officers, and Auckland City by 50 officers over this 12 month period,

 providing assistance with costs of hosting the APEC meeting

 our massive commitment to increase education facilities in Auckland."

"New Zealanders can be confident that as the economy grows, lowering taxes, paying off debt and increasing spending on important social areas will continue to be our priority," said Mrs Shipley.

ENDS

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