Time for a Postive Vision
Wow Horowhenua has done it again. We have just experienced another fantastic weekend of events. The balloon festival was as spectacular as ever and everyone got a glimpse – even passing motorists who pulled over to take photos or simply enjoy the views. Our Koputaroa farm even provided a landing zone, with a paddock providing the perfect place to land after a change in wind direction. The nightglow was well attended and those attending were given the opportunity to get up close to a balloon.
The Foxton Easter Fair was huge. I couldn’t believe the crowds who just kept coming. It was so chocker block it was difficult to negotiate the kids buggy around all the people! This Fair attracts people from Palmerston North and Wellington for a day trip because it’s so well organised and managed.
Many Parents at both events were discussing with me how their household budgets had tightened this year. They are mindful of the fact that they may have gone to two events with the kids over the Easter break in the past, but now the wallet can’t sustain that. With rising interest rates, rising food and petrol costs, high council rates, a wobbly housing market and falling share markets it has got a hell of a lot tougher for large numbers of people.
A profile on the Horowhenua and Kapiti region has just been completed following the Census and it shows the Otaki electorate has nearly 15,000 people aged over 65 years (the highest in NZ) and more than 25,000 people over 15 years of age earning less than $25,000 per year.
This shows we have generally low wages and a big chunk of our population is surviving on a fixed income. This big spending and wasteful Labour Government expect our ordinary locals to tighten their belt when it looks like we are heading for a recession - while they can carry on with the big spending spree. Over the past eight years hard working kiwis have been forced to listen to Finance Minister Michael Cullen spout on that there is no fiscal headroom for tax cuts while he hoards billions of dollars of taxpayers’ money to build the war chest for this year’s election.
Now when it looks like the polls are going dog on Labour and the electorate is sensing a real mood for positive change with National under Leader John Key – it’s now ok for Labour to deliver tax cuts.
What’s more the May Budget will probably announce that the first tax cut will hit the wallet just before polling day in October or November. It will take more than $15 to $20 per week in tax reduction to change the mood on the street. Many tell me that money has already disappeared in household spending – not to mention helping the local school out with donations etc.
The increase in superannuation from 1 April (about $5 a week) will be partially gobbled up in the electricity price increases forecast this winter.
National has long been committed to a programme of ongoing credible tax cuts (not just in election year) and continues to believe that hard working New Zealanders make the best decision on how to invest or spend their earnings – not the Nanny State Labour Government.
To add to the pressure that many are facing the housing market is cooling with the banks and lending institutes tightening the criteria to get a loan. Consumer spending on debit, credit and store cards has fallen this year, adding to the fear that high interest rates are curbing consumer spending and economic growth is predicted to slow.
An example of this is a mortgage of $250,000 borrowed at 7.65 per cent two years ago cost about $1773 a month. But if interest rates reached 9.8 per cent, that would jump to $2157, or an extra $400 a month. That’s where the Labour Government needs to take much of this on the chin. They have squandered the good economic times and now are blaming the world market – when hard working kiwis are left to try and make ends meet.
Plan ahead, work out a budget, and cut back on luxuries. That's the advice from the Federation of Family Budgeting and my advice is don’t be fooled when you get your first tax cut after eight years – just before the polling booth opens.
It’s time for a new positive vision for New Zealand with less of a Government that thinks it knows best. John Key and National will deliver that much needed change.