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Family Party Statement on Economic Crisis

16 October 2008

Family Party Statement on Economic Crisis

The Family Party recognises that the current economic situation is too important for any individual party to shoulder, and requires a cross-party response. A decade of deficits and exorbitant state spending proves that Labour cannot be trusted to manage the economy in this difficult time. National in our view has the economic expertise to manage this crisis, so our country needs a change of government. But just as we do not trust Labour to manage the economy, we believe the Family Party is needed to ensure that National protects and keeps the best interests of New Zealand families at the forefront of their endeavours.

The Family Party wishes to work alongside the economic expertise of National, and possibly Act, to keep the government focused on New Zealand families throughout this crisis.

We propose the following measures:

TAX

1. Lower personal and business taxes to keep more money in the home, businesses and the overall economy.

2. An immediate repeal of the Emissions Trading Scheme, to remove this unnecessary cost to New Zealand families and businesses.

3. Immediately suspend Kyoto Protocol commitments, an unnecessary expense we cannot afford.

HOUSEHOLD ESSENTIALS AFFORDABILITY

4. Remove GST from basic food groups, infant and elderly necessities, household energy (power bill) rates (a tax on top of a tax) and the excise duty on fuel (a tax on top of a tax). Also see points 7 and 8 under Banking.

PUBLIC SECTOR AND CORE SERVICES

5. An immediate 3-month cap on the current expenditure level of the entire public sector, thereafter reviewed on a regular basis, during which period we would conduct:

a) A detailed review of all public-sector expenditure, to identify non-essential expenditure that could be scaled back, cut, or redirected to the provision of front-line services for the duration of the crisis, and to identify expenditure that must be increased to manage this situation.

b) An urgent review of bureaucracy such as the RMA and the Building Act, to cut compliance costs.

c) Maintaining our welfare and public health expenditure, and increasing it where necessary, but redirecting costs where possible from bureaucracy to front-line services.

d) Maintain law enforcement and defence expenditure and expand if possible as in our policies, providing more employment in these sectors.

6. Protect the families of public sector employees by avoiding lay-offs. Where possible money will be saved in ways that do not reduce employment, but any staff that may still become redundant through restructuring will wherever possible be provided employment elsewhere in the public sector at their current pay level and near their current location, in those areas of the public sector that are being expanded as a result of the crisis.

BANKING

7. An immediate cut in interest rates as far as the Reserve Bank deems feasible.

8. Any family that has a fixed rate mortgage over their family home (which they must be living in) will have the costs to break that mortgage met by the government to avail themselves of lower interest rates.

9. A short-term guarantee of bank deposits in reputable firms to reduce the risk of savings withdrawals and bank closures, to be reviewed every six months.

EMPLOYMENT

10. Favour New Zealand companies over off-shore companies for state contracts for the duration of the crisis, to maintain employment in NZ.

11. If the crisis gets worse and unemployment rises significantly, the establishment of work-for-the-dole schemes to provide employment and income for families while constructing useful infrastructure for the benefit of the country.

Notwithstanding the significance of the economic crisis facing our country, the Family Party is optimistic that through cross-party support and the best use of New Zealand's economic and business minds, we can have every confidence in building a great future.

Our workable MMP strategy to target winnable seats through former MP Paul Adams in East Coast Bays and Jerry Filipaina in Mangere, means EVERY PARTY VOTE for the Family Party will count towards a brighter future for New Zealand businesses and families.

ENDS

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