Deeper and more savage cuts to public services could be on the table following revelations of the ballooning cost of tax cuts for landlords.

"The Government has made a clear choice to fund the lifestyles of landlords at the expense of a strong public service that supports the needs of New Zealanders every day," said Kerry Davies National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

New analysis by the Council of Trade Unions shows National’s landlord tax cut will cost $3 billion, nearly $1 billion more than expected. This reflects National’s agreement with ACT to accelerate the reinstatement of mortgage interest rate tax deductibility and updated IRD numbers.

"How can New Zealand afford such a generous hand out to landlords when we need a strong public service to meet our many challenges?

"Why does the new Government place a priority on supporting landlords when pay equity payments languish for 65,000 low-income care and support workers who help people live with dignity?

"Why does the new Government think landlords should be a priority for such a big tax cut when the cost-of-living crisis is putting so much pressure on Kiwi families?

"This decision to accelerate the tax break at ACT’s behest has nothing to do with good economics or good public policy. National has a made a clear choice to do this at the expense of other choices we argue are far better for the health, wellbeing and prosperity of New Zealand.

"The Government is already looking to slash 6.5% from the budgets of a big group of Ministries and agencies. We know it’s struggling to fund its tax plans already from these cuts, so what more will the new Government have to do now to deliver on its promise to ACT to enrich landlords?

"If it chooses to cut public services deeper than planned, there is no doubt New Zealanders will be worse off," said Kerry Davies.

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