4 July 2002

"Labour's plans to introduce more taxes - if re-elected - without telling voters have come unstuck today," says National Finance spokesman David Carter.

Mr Carter says Finance Minister Michael Cullen's tacit admission that Labour is looking at introducing a special health tax comes on top of reports showing that a massive increase in petrol tax is needed to fund roading projects already in the pipeline.

"Dr Cullen appears to be protesting too much, but he is clearly rattled that his sneaky plans to introduce more taxes by stealth have been uncovered.

"During this term of government, he has only managed to keep Labour within its fiscal limits by piling on an additional $900 million in new taxes that weren't on Labour's 1999 pledge card.

"It's clear - if re-elected - Dr Cullen and Helen Clark will introduce more tax increases by stealth - especially on health and fuel."

Mr Carter says if 'higher tax' is the answer; then the question must be 'how does Labour intend to make New Zealand worse off?'

"Higher taxes will go alongside Labour's other agenda items - namely pay equity, general strikes and higher inflation resulting in higher not lower interest rates," says Mr Carter.

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