Hon Dr Michael Cullen
Minister of Finance

25 July 2005
Media Statement

Key needs to tell the full story

Finance Minister Michael Cullen said John Key was being highly selective in his presentation of the facts around the use of consultants in the public service.

“Total spending across all departments is down from the amount Labour inherited when we took office in 1999 and the rate of increase in spending has slowed from 7.3 per cent a year between 1995-96 and 1998-99 to 4.2 per cent.

“The evidence across the economy is that the prices for these sorts of services rose over the 10 year period by 2.9 per cent a year on average, suggesting that more than three quarters of the increase registered under Labour reflects the effects of inflation.

“More to the point is that Mr Key is being disingenuous in implying that consultant costs would not rise sharply under a National government as National slashed full time staff numbers in the state sector to pay for tax cuts,” Dr Cullen said.

ENDS

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