Media statement
For immediate release
Monday, 6 October 2008

Families will suffer in ‘gloomy picture’- Dunne

The latest treasury estimates paint a ‘very gloomy picture’ ahead, with increasing unemployment, lower wage increases and billions of dollars less in the expected tax take, says UnitedFuture leader Peter Dunne.

“The new estimates don’t even factor in the most recent events of the financial crisis, but will see NZ families and businesses hit hard,” says Mr Dunne.

“With jobs and wages forecast to drop, the business tax cuts initiated by UnitedFuture will be invaluable in keeping the economy going.

“If businesses cannot survive and grow, there are simply not going to be any jobs out there.

“Households are already being hit hard by economic conditions and price rises. They need sustainable, fair tax cuts to help them survive the economic cold winter coming.

“But now is not the time for a money-scramble in order to chase votes for the election.

“National’s promised tax cuts ‘north of $50’ look increasingly unsustainable, without either substantial borrowing or significant adjustments to other areas of government social spending, given a cash deficit forecast of nearly $6 billion.

“Tax cuts need to be targeted at middle income families who have borne the tax brunt in New Zealand for too long without thanks or relief.

“Today’s figures show that once again it is families who are likely to bear the brunt of economic hardship, just as it is families who are bearing the brunt of things like the costs of the emissions trading scheme.

“That is why UnitedFuture’s tax policy, including our flagship income splitting policy focuses on families with dependent children, which is where the emphasis needs to be at present,” he says.

ENDS

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