Media statement Thursday, May 22nd, 2008

Was that it? More of the same...

The government's tax cuts total $1.5 billion though it has been running surpluses four times that for years; this is patronizing and a complete let down, the Employers & Manufacturers Association (Northern) says.

"Its disingenuous to promise tax cuts for the next three years while the polls say the government won't be around to deliver them," said Alasdair Thompson, EMA's chief executive.

"Telling people with pockets emptied by rising food and fuel prices they can only have $12 to $28 a week to prevent inflation is laughable.

"Its nonsense to claim tax cuts have to be staggered over three years to avoid inflation; today's inflation is either all imported (oil) or determined by international supply and demand (food, dairy products).

"Cutting tax wouldn't have any effect on them, and neither would higher interest rates.

"Dr Cullen should understand his increased spending on transport and broadband is expected for non-political reasons as it lays the foundation for higher productivity and is therefore also not inflationary.

"We fully support the added spending on health and education when they are accompanied by increases in productivity.

"But its all too easy for the government to fritter taxpayers funds on non-productive spending and ideological regulation that requires armies of public servants (20,000 more since taking office) to enforce."
ends

© Scoop Media