Cuts on the table for low and middle income families
green-party
Wed Mar 23 2011 13:00:00 GMT+1300 (New Zealand Daylight Time)
Cuts on the table for low and middle income families
Wednesday, 23 March 2011, 3:15 pm
Press Release: Green Party
23 March 2011
Cuts on the table for low- and middle-income families
In order to save anything like the figure intended, John Key’s Government will have to cut Working for Families support from more than just so-called ‘high income’ families, the Green Party said today.
“Earlier this week, John Key signalled he wants to save around $250m from Working for Families, as part of a ‘zero budget’ to be announced in May,” Green Party Co-leader Russel Norman said.
“Both John Key and Bill English have suggested that this can somehow be done by cutting just from ‘high income’ families, but as Bill English himself agreed in Parliament today, taking higher-income families out of Working for Families would save very little money.”
The Green Party has estimated that in order to save $250m from Working for Families – barely enough to cover the interest on proposed earthquake recovery debt – the Government would have to cut not only from ‘high income’ families, but from low- and middle-income families as well.
“According to our figures, taking every family with a combined income of more than $80,000 out of Working for Families would save just $70m,” Dr Norman said.
“Where is the other $180m going to come from if not from low- and middle-income families? Our figures suggest you would have to cut right down to families with a combined income of $60,000 to make savings in the order of $250m.”
Dr Norman said a fairer, more compassionate, and more fiscally responsible way to save money for earthquake recovery was a small, temporary levy on those earning over $48,000.
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“There is an alternative to the cuts proposed by National and the borrowing proposed by Labour, and that is a levy spread fairly across those who can afford to pay,” Dr Norman said.
“A levy would be much less costly for families than cuts to Working for Families. A family on a combined income of $60,000 could permanently lose up to $100 per week if they lost access to Working for Families, whereas a temporary earthquake levy would cost that family just $3.45 per week.
“I know which option I would prefer, and so do the thousands of New Zealanders who are willing to share the burden to rebuild Christchurch.
“It is not fair to ask working families who are already struggling to make ends meet to bear the burden of earthquake recovery, when it could be shared across all New Zealanders who can afford to help, each paying a little.”
ENDS
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