David Cunliffe
Finance Spokesperson

3 March 2010 Media Statement
Don’t talk down the recovery Mr English

The latest Crown Accounts show the Government’s books are significantly improving and put more pressure on Bill English to ensure all Kiwis benefit from the recovery, Labour’s Finance spokesperson David Cunliffe said.

"It is time the Minister of Finance was frank with Kiwis that the books are improving, and ensure that he does not talk down the recovery as cover for delivering a tough Budget," David Cunliffe said.

“This year’s Budget needs to deliver to the many, not the few. But all we have heard from National are plans to hike GST to 15% and a tax cut plan that will offer little to middle and low income Kiwis."

David Cunliffe said the Crown Accounts showed gross debt was $2.9 billion lower than forecast, and continues Labour's legacy of low debt, with gross Crown debt the third lowest in the OECD.

“Crucially the operating deficit was $1.4 billion lower than forecast at only $630 million,” David Cunliffe said.

"While still significant, this closes the operating gap by about 70% and shows drastic reductions in services are not justified in the 2010 Budget.

"The Crown's investments in the New Zealand Super Fund and ACC both tracked above forecast, and NZSF is now worth $2.5 billion more than when the Government decided to suspend contributions for a decade.

"With these improved forecasts, Labour challenges the Government to resume payments into the SuperFund.

"New Zealanders have gone without during the recession. The improvement in the Crown accounts should provide comfort that there are better times ahead.

"It is essential that all Kiwis share in the recovery.

“John Key and Bill English have to stop sending mixed messages to Kiwis about what they can expect in Budget 2010.”

ENDS

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