John Key MP National Party Finance Spokesman

16 March 2005

Labour’s economic legacy takes hold

National Party Finance spokesman John Key says Labour’s economic legacy is now starting to become blindingly obvious to all New Zealanders.

“Today the Reserve Bank delivered another set of warnings about the likely slowdown in growth. What we really need is productivity-driven growth not inflation-driven growth.

“Labour has failed to provide an environment where this is possible because it is incapable of setting realistic priorities for quality public spending and inflation is on the rise as a result.

“Homeowners are being clobbered with rising interest rates, workers are fighting to get decent after-tax pay rises, exporters are coping with a dollar at astronomical levels, and Labour’s tax and spend philosophy is pushing along inflation.

“Meanwhile household debt continues to rise as mortgage holders follow Labour’s big spending example.

“National’s concerns about Labour’s management of the economy are being proved correct.

“While the tinkering being carried out by Michael Cullen and Helen Clark hasn’t been too painful in an economy on the way up, you can be sure it will really start to bite on the way down,” warns Mr Key.

“National is taking a comprehensive approach to the economy. We will reform welfare, tax and employment laws and get the economy back on track,” says Mr Key.

ENDS

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