Source: New Zealand Labour Party
The National Government continues to talk about irresponsible tax cuts that will only drive up inflation, despite the country entering a technical recession.
GDP declined 0.1 percent in December, following a decrease of 0.3 percent in the previous September quarter. This meets the definition for a technical recession.
“Kiwis have been dealing with a cost of living crisis for some time and are yet to see a single policy from the new Government to help them,” finance spokesperson Barbara Edmonds said.
“Instead of policies to make childcare more affordable, making most prescriptions free, or half price public transport, this Government has just spent nearly $3 billion on landlords and is still planning tax cuts that won’t benefit working people in the way they promised.
“These decisions also risk free lunches for school kids and flexible funding for carers of people with disabilities.
“Even the IMF, an international body that monitors and advises on countries’ economies, has warned the Government about spending money on tax cuts that could be inflationary. For a party that claims economic credibility this is a massive blow.
“We were realistic during the campaign about what the country was facing. We told the National Party their numbers didn’t add up and they ploughed on ahead with promises anyway and ignored all warnings.
“They should heed these warnings and pull back on their plans for tax cuts, which will only be more inflationary and lead to harder times ahead for working people as services are cut in order to pay for them.
“Economists have all been forecasting tough times, it’s time National started being up front and making decisions for all Kiwis, not just a few,” Barbara Edmonds said.
