David Cunliffe

Finance Spokesperson

22 March 2011

MEDIA STATEMENT

Key, English Flounder in Separate Stagnant Pools

Finance Minister Bill English is floundering when he tries to come up with a convincing explanation for why Prime Minister John Key has publicly overridden his plans to debt-fund the earthquake recovery, says Labour’s Finance spokesperson David Cunliffe.

“Even worse, perhaps, John Key is floundering when trying to explain why on Sunday he contradicted what Bill English said just last Thursday,” David Cunliffe said.

“The economy is deeply mired in recession, yet the two top figures in the Government are clearly not talking to each other, creating even less confidence in their administration.

“Last Thursday Bill English said he wouldn’t cut operating spending. On Sunday John Key said the opposite.

“Mr Key’s IMF-induced plan to cut new operating spending to zero in Budget 2011 is an extreme and dangerous response.

“By ripping out nearly a billion dollars of expenditure National is bound to contract the economy and prolong the recession.

“No wonder that the Government cannot come up with an economic plan,” David Cunliffe said. “They can’t even come up with an economic conversation.

“John Key has seized the opportunity offered by the earthquake to push National’s agenda to cut government spending and services.

“In doing so he will push New Zealand even deeper into recession, and Kiwis who are already struggling to make ends meet and Kiwis who can’t find jobs will find themselves even more deeply embedded in National’s scrapheap.”

ENDS

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