Phil GOFF
Labour Leader
04 October 2011
MEDIA STATEMENT

Key admits homeowners could face mortgage rate rise

John Key has this afternoon finally admitted that Kiwi homeowners may be stung by mortgage rate rises because of the double credit rating downgrade that has come under his watch, says Labour Leader Phil Goff.

“It’s about time John Key stopped denying responsibility for the downgrade and fessed up about the impact his economic mismanagement could have on homeowners.

“Initially John Key claimed mortgage rate rises were ‘unlikely’. Then his own Finance Minister contradicted him, saying he had ‘no doubt’ there would be increases. Now John Key is admitting that ‘over time it [the credit downgrade] might’ spark interest rate rises.

“John Key should tell Kiwi homeowners the truth. He should stop trying to wriggle out of taking responsibility for his abysmal handling of the economy and the fact it has led to a credit downgrade by two leading rating agencies.

“The downgrade puts New Zealand on a par with Spain – a country whose economy has been repeatedly described by National as being in trouble.

“It’s not good enough for John Key to say everything will be okay and we’ll simply ‘muddle through’. He has let Kiwis down. He does not have a plan to get our economy going.

“It’s not okay to borrow $18 billion more than we are earning in a single year and to spend a big chunk of that on tax cuts for the most wealthy New Zealanders. It’s not fair and it’s not right.

“Where is John Key’s much promised brighter future? Certainly some Kiwis are much better off – the wealthy ones who got $1000 a week in tax cuts. But many other Kiwis are hurting and struggling to pay the bills because of John Key’s utter failure to manage our economy.”

ENDS

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