4 July 2002

The Government's new 8% health tax breaks the promise not to increase taxes made by Helen Clark just four days ago on a credit card bearing her signature, National Leader Bill English said today.

"It is time Labour came clean about its hidden agenda if it is re-elected.

"This policy slipped out by accident but at least voters now know that Labour planned more taxes. The only reason you ring-fence a tax is so you can increase it.

"This means hard working New Zealanders facing higher interest rates and working hard to pay the bills each week now face the prospect of an extra tax.

"Before the last election Labour promised better health and education services if it raised taxes. Now we have striking teachers and health cuts.

"Labour will lump this health tax on people because it can't deal with the commitments it has made and the financial scandal in the health system that I revealed earlier in the week.

"The Government needs to be honest with voters on what this health tax is really about. It is about taking more money from hard working taxpayers with no commitment they will get any benefit from it," Mr English said.

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