National's attack on Labour's new action plan for economic growth and a fairer tax system is feeble and hypocritical from a Government that is borrowing to pay for tax cuts for the rich, says Labour Leader Phil Goff.

Labour today released a plan to rebalance the tax system, including the creation of a new tax-free zone. It will mean that New Zealanders won't pay any tax on the first $100 they earn each week. Labour has indicated it will help pay for this policy by cracking down on tax dodgers and introducing a new top tax rate for the country's top earners.

"Labour has come out with a clear plan to help those Kiwis who are struggling as prices rise much faster than wages under the National Government. We are not afraid to be bold and to demonstrate clearly to New Zealanders how we will work to create jobs and grow the economy. National, on the other hand, is dithering around with no ideas of its own.

"National has spent almost $15 billion dollars on tax cuts that went mostly to the wealthiest New Zealanders. It is borrowing $120 million dollars a week to pay for that policy. Yet Bill English has got the cheek to suggest that Labour will not be able to afford a much more prudent and fair tax-free zone - a policy that treats everyone the same.

"Unlike National, Labour ran Budget surpluses and reduced net Government debt to zero. Bill English borrowed for tax cuts, we won't.

"The difference between me and John Key is that I won't make promises that I can't afford to keep. John Key said before the election that he wouldn't increase GST but he did. It's John Key and Bill English who shouldn't be trusted.

"Bill English is attacking Labour for its policy of closing the loopholes exploited by tax avoiders. It's something Treasury recommended he should do. But he failed to act.

"The productive and export sectors are crying out for actions which will encourage investment into areas which will produce real growth rather than speculation. Labour will act where this Government has failed to.

"United Future's Peter Dunne also seems to think that putting $1000 of additional income a year into the pockets of a working couple doesn't count for anything but they would disagree with him. It just shows that he and the Government he props up are out of touch with the lives of New Zealanders who are feeling the financial squeeze and will welcome some relief."

ENDS

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