Alliance Endorses CTU Economic Programme

Alliance Party media release FOR IMMEDIATE RELEASE Tuesday 12 October2010

The Alliance Party welcomes the release of the CTU's Alternative Economic Strategy. Co Leader Kay Murray said the Alliance Party shares the CTU vision of a more fair and equal society where poverty is not tolerated.

“It is refreshing to see a taxation strategy that focuses on ways to reduce the tax paid by low and middle income earners rather than the wealthy,” said Ms Murray.

The report includes such measures as a tax free band and tax rebates for people on incomes under $35,000 and a return to a 45% tax rate on income above $150,000. This is in addition to a plan to reduce GST and gradually phase it out in favour of other forms of taxation such as a financial transactions tax and capital gains tax on all but the family home.

Ms Murray said that the Alliance applauds the measures put forward by the CTU to rein in the financial sector. This included the recommendation that the Reserve Bank be given the power to peg the exchange rate for stability. Ms Murray acknowledged that this would require a substantial rewriting of the current Reserve Bank Act which was Alliance policy.

Ms Murray said the Alliance wholeheartedly endorsed the CTU's determination to recreate an economy that serves the needs of the people, not the other way around.

“Most New Zealanders would be happy to see such things as the suggested buy back of the private electricity system and Telecom's physical network and the use of government procurement to develop local industry.”

The Alliance challenged other parties which claimed to be on the left to endorse the CTU prescription as well.

ENDS

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