5 July 2002

"Acting Transport Minister Judith Tizard has admitted that another tax hike is on the cards if Labour is re-elected," says National Party Leader Bill English.

Mr English says that Ms Tizard confirmed likely rises in petrol tax when questioned over the Government's proposed transport strategy on radio today.

"Official papers support this, revealing that a petrol tax increase of 8 cents a litre was needed to fund current roading projects when the Government increased petrol tax by 4.7 cents this year.

"It's clear that petrol tax hikes are on Labour's agenda, as well as working out a way of increasing income tax by renaming some of it as a dedicated health tax.

"Dr Cullen must come clean so voters know the exact scale of proposed tax increases on his agenda if re-elected."

Mr English says Dr Cullen has been arguing consistently that higher taxes are better for the economy than lower taxes and these disclosures confirm that a re-elected Labour Government will implement his high tax agenda.

"New Zealanders have a right to know, before the election, what is exactly on Labour's agenda, which includes policies such as higher taxes, bureaucratically determined pay equity and support for general strikes, which will all be bad news for an economy heading for tougher times," Mr English added.

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