Chris Hipkins’ comment that New Zealand’s “economic fundamentals are in good shape” lays bare the depth of Labour’s economic mismanagement and shows just how out of touch Hipkins and the Labour Party are with the lives of everyday Kiwis, National’s Finance spokesperson Nicola Willis says.

“After six years of reckless spending and economic mismanagement under Hipkins and Labour, New Zealand’s economy is in recession, inflation is running at 6 per cent and mortgage repayments are too much for many Kiwis to handle.

“No one in New Zealand believes our ‘economic fundamentals are in good shape’, except, apparently, Chris Hipkins.

“New Zealanders are doing it tough. They deserve competent economic management that gets the economy working to create better jobs, higher incomes, affordable mortgages and a lower cost-of-living, including tax relief.

“Worryingly though, yesterday Labour’s Finance Minister Grant Robertson repeatedly refused to rule out a Jobs Tax, which he said would be introduced when ‘economic conditions allowed’.

“Was Chris Hipkins laying the groundwork for a Jobs Tax with his comments about our economic fundamentals being in good shape?

“Labour’s new Jobs Tax will mean every working New Zealander and every employer will be hit with a new tax of 1.39 per cent every year to pay for a gold-plated welfare scheme.

“It would make a worker on an income of $60,000, $834 worse off every year. That’s $834 less for groceries, bills, and people’s own savings. It’s a cost Kiwis simply can’t afford.

“Employers, who are already doing it tough under Labour, will also be hit with the 1.39 per cent tax. For a small business with ten employees on median wages, that would add $7200 to the annual tax bill. That’s $7200 less cash available for pay rises and may be forced to hike prices to pay for it.

“The choice for New Zealanders on October 14 is clear - a strong, stable National-led Government with a plan for the future that will rebuild the economy to reduce the cost of living and help Kiwis get ahead, including with well-deserved tax relief to the squeezed middle so that they can keep more of what they earn.

“Or three more years of a high taxing, high spending Labour-led government that is out of touch with reality and lacks the plans and ideas needed to address the issues facing New Zealanders.”

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