14 December 2009 Media Statement

National must back families as economy recovers

Budget 2010 needs to be a budget that delivers for all hard-working Kiwis, says Labour Finance spokesperson David Cunliffe.

Foreshadowing tomorrow’s release of the HYEFU, David Cunliffe said it was widely believed that it would show that the economy is recovering better than expected.

“What is also clear, however, from talking to people around the country, is that the recovery is patchy for New Zealanders generally.

“That is why it is so important for the Government to foreshadow a budget next year that ensures that all New Zealanders share as much as possible in the recovery,” David Cunliffe said.

“I am concerned that Finance Minister Bill English has used the state of the books in recent months to undermine ACC and the Super Fund, two institutions that are crucial to the future fabric of our society.

“Kiwis want and deserve a clear message from this Government --- that Budget 2010 will chart a planned and sustainable way forward for New Zealand, and that it will provide fairness across the board for New Zealanders.”

David Cunliffe said the Reserve Bank’s Monetary Policy Statement forecast 3% GDP growth in 2010 and 4% in 2011, “but while the recovery is underway, it is not yet being shared by all.

“In particular, more than 20,500 young New Zealanders have lost their jobs in the recession, many thousands more are working reduced hours, and the cost of living has gone up while pay is generally frozen. More and more Kiwis are struggling to make ends meet,” David Cunliffe said.

“Building a strong and sustainable future for New Zealand means appropriate investment in research and development, innovation and skills.

“These are the real drivers of improved productivity, and the real recipe for a recovery that brings all Kiwis along.”

ENDS

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