Tuesday 25 January

Labour Leader Phil Goff's State of the Nation speech lacks imagination and fails to confront New Zealand's key issue of rising Government spending, ACT New Zealand Finance Spokesman Sir Roger Douglas said today.

"Mr Goff's speech today delivered nothing new. Instead, it maintains the same tax and spend mentality we have seen from Labour for the past 15 years," Sir Roger said.

"The 'tax free zone' of the first $5000 of income may sound nice but unless it is matched with a reduction in spending it is just another 'money-go-round'; Mr Goff would have to increase taxes in one place to cut them in another.

"The fact is New Zealand is in trouble, we are living beyond our means, and rather than solving the problem we have Mr Goff trying to add to it.

"Finance Minister Bill English is very good a pointing out the problems with Labour's tax-free threshold proposal, but when it comes to his budget the reality is he does not follow his own advice. Government spending has continued to increase under National and we are now borrowing $300 million per week to pay for it.

"Unless National and Labour start dealing with the real issues facing this country, New Zealanders will have to pay the price. We will continue to see our credit rating under threat, our interest rates soar and our taxes increased in order to pay for it. With such unimaginative policy from National and Labour, it is no surprise that we continue to see thousands of New Zealanders vote with their feet and leave New Zealand. It would be far less painful to deal with this issue now, rather than continuing to push it under the carpet," Sir Roger said.

ENDS

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