Phil
GOFF
Labour Leader
10 October 2011 MEDIA STATEMENT
John Key caught in double downgrade lie

Prime Minister John Key has been caught out misleading New Zealanders and Parliament about comments made by ratings agency Standard and Poor's, says Labour Leader Phil Goff.

"In Parliament, John Key claimed that Standard and Poor's had said if there was a change of Government then a 'downgrade would be much more likely'. That has now been proven to be a lie.

"Standard and Poor's has today rejected the claims made by John Key, saying 'we don't rate political parties. We rate Governments’,” Phil Goff said.

“In fact, Standard and Poor's has praised policies under a Labour Government, saying on savings we should get back to what New Zealand was doing 3 years ago.

"Labour will today lodge a privileges complaint about the Prime Minister's decision to blatantly lie to MPs and the New Zealand public.

"John Key was clearly so worried about the failing grade given to his Government by Standard and Poor's that he decided to mislead his colleagues, Parliament and Kiwis.

"This was the first downgrade for 13 years and came after 3 years of a National Government.

"National has used every excuse in the book to explain away the double downgrade and has now clearly resorted to lying in an effort to try and cover for its failings that led to the double downgrade.

"The reality is as a direct result of National's economic mismanagement, Kiwis will likely face interest rate rises on their mortgages at a time when they are already struggling with the rising cost of living.

"Instead of making up fairy-tales about what Standard and Poor's had to say, John Key should have been apologising to New Zealanders for his failed economic policies which led to the double downgrade.

"National has stated that it will not alter its economic policies in light of the double downgrade even though these policies are clearly failing

"Labour has a plan to create a strong economy. We will invest in KiwiSaver and have a tax system that is fair to all Kiwis and pays off our debt without selling our assets."

ends

Authorised by Hon Phil Goff MP, Parliament Buildings, Wellington

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