David

CUNLIFFE

Finance Spokesperson

14 June 2011 MEDIA STATEMENT
Huge increase in vege and fruit prices hurt Kiwis

A huge increase in the price of fruit and vegetables, up 12.8 per cent in the year to May, won’t surprise struggling Kiwi families, and reinforces the need for Labour’s policy of removing all GST from fresh fruit and vegetables, says Labour’s Finance spokesperson David Cunliffe.

“All food prices have risen 7.4 per cent in the year to May, with grocery foods making the most significant contribution,” David Cunliffe said.

“That’s bad news for low- and middle-income Kiwi families. While John Key’s National Government has handed out thousands of dollars in tax cuts to the wealthiest New Zealanders, most families are finding it harder and harder to make ends meet.

“John Key’s friends are not worried that vegetable prices have soared 21.4 per cent in the past year, but the hundreds of thousands of Kiwis who don’t have jobs, or who are on the minimum wage or the average wage do care because they can’t feed their families properly.

“A Labour Government will not only take GST off fresh fruit and vegetables, but will raise the minimum wage to $15 an hour in our first term, make the first $5000 of earnings tax-free, change the tax system so everyone pays their fair share, and create an economy in which Kiwis can look forward to well-paying and secure jobs,” David Cunliffe said.

ENDS

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