John Key MP National Party Finance Spokesman

17 May 2005

Finance Minister disowns Labour's lay-by Budget

"It's looking increasingly like Labour is planning to make some minor inflation adjustments to tax thresholds to be applied at some point in the conveniently distant future," says National Party Finance spokesman John Key.

"Make no mistake, this will be a Labour lay-by Budget with hollow upfront promises and delivery on the never-never.

"Pathetic as the changes will be, Michael Cullen has been forced into a humiliating U-turn over 'bracket creep'. This is clear evidence that what he's been saying about the affordability of tax cuts is nonsense.

"No wonder Dr Cullen has refused to pose for the traditional pre-Budget photographs - he is trying to distance himself from the document.

"Most New Zealanders already know that Michael Cullen is no fan of lowering tax rates, and most New Zealanders accept that Labour has no ability to set sensible spending priorities.

"Working New Zealanders will not fall for Labour's too little too late con-job on tax, and Dr Cullen knows that.

"But minor tinkering with the tax thresholds will not stop the exodus of Kiwis to Australia.

"Labour is stubbornly refusing to face up to the reality of Australia's charm offensive on our best and brightest through its hugely competitive changes to tax, instead Labour is seeking to continue its extravagant form of the past six years.

"How many new taxes will we have to pay before Dr Cullen drip feeds a little bit back?

"Only National can be trusted to deliver lower taxes and better rewards for all working New Zealanders," says Mr Key.

ENDS

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