National's Plan for the Economy
Winter has arrived and household budgets are getting tighter. Petrol has tipped the $2 a litre market, food costs at the supermarket are continuing to rise and mortgage interest rates have nearly doubled since Labour came into office. On top of this, electricity prices also continue to rise while our local council is proposing to increase rates 7-10% this year – much of this due to extra costs imposed by central Government legislation that has passed. All of these factors are making it tougher to make ends meet. I have heard that budgeting services are fielding a lot of calls from concerned citizens trying to balance budgets.
This Labour Government has been in charge of your hard earned cash for more than 8 years and in last month’s Budget announced how they want to spend your money in the next 12 months. Labour has promised tax cuts before (remember the chewing gum tax cuts?) and then dumped them as they chose to instead hoard the cash and divvy it out as they see fit. Now the economy has tightened, and with opinion polls predicting a victory to National at this year’s election, Labour has reluctantly delivered tax cuts (and passed legislation so they have to go ahead with them) from 1 October this year. But the bribe hasn’t hit the spot with many punters – who echo what we are saying, that it is ‘too little too late’. To deliver a tiny tax cut ($16 per week for the average worker) just before polling day smacks of desperation and most New Zealander’s have seen through that. While Pensioners may be pleased that Super will increase (as the net take home pay goes up) they still have to face the tough winter months on a fixed income when prices are soaring.
In short, Labour has squandered the good times over the last few years when the economy has been strong. This Government has increased spending by $40 Billion over the past 8 years and many of us are left wondering how and if we are better off from it? Much of this money has been wasted. Just last week Housing New Zealand (HNZ) was exposed for organising extravagant conferences costing $70,000 at retreats like Tongariro Lodge.
Taxpayers are also horrified to hear that public servants have grown topsy turvy under Labour, from 26,000 to 36,000 – a staggering growth of 10,000 people into Government Departments with the average public service pay scale now outstripping that offered in the private sector. While many are very competent at their jobs we can’t sustain this growth, so National plans to cap these numbers.
Budget 08 was not about addressing the real priorities of our country’s future but more about Labour’s political survival.
Under Leader John Key, National has a five-point plan for the future.
This plan will include:
- An ongoing programme of personal tax cuts. We will put the right incentives in place to encourage people to work and save and get ahead under their own steam. Boosting after-tax wages will help stem the flow of Kiwis overseas. It will help New Zealand keep the skilled workers we need to grow our economy and improve our public services.
- Bringing discipline to government spending. The government should be just as careful with your tax dollars as your household is with the weekly budget. National will direct spending away from low-quality programmes that push up inflation, towards frontline services like doctors, nurses, teachers, and police.
- Tackling bureaucracy and red tape. We will cap the number of bureaucrats in the core public service, and we will reform the Resource Management Act and the Building Act. We want to cut the high compliance costs that bog down everything from growing a business to building a deck.
- An unwavering focus on lifting education standards. We will introduce National Education Standards in primary and intermediate schools to improve literacy and numeracy. We will boost trades in schools and encourage teenagers to get the skills they need to make the most of themselves.
- Boosting infrastructure to help this country grow. We have a $1.5 billion plan to bring ultra-fast broadband to businesses, schools, hospitals, and homes. And we will work with the private sector to substantially boost investment in roads, electricity, and water.
Our plan for the economy is focused on getting New Zealand onto a much stronger path of economic growth and opportunity, and building a wealthier future for all of us.