Labour + Goff = billions of dollars more debt
new-zealand-national-party
Fri Nov 04 2011 13:00:00 GMT+1300 (New Zealand Daylight Time)
Labour + Goff = billions of dollars more debt
Friday, 4 November 2011, 4:08 pm
Press Release: New Zealand National Party
Hon Steven Joyce
National Party
Campaign Chair
4 November 2011 Media Statement
Labour + Goff = billions of dollars more debt
Phil Goff and Labour have confirmed they have no credibility on economic policy by digging a multi-billion dollar debt hole that Greece would be proud of, National Party campaign chair Steven Joyce says.
“There’s so much dodgy accounting in Labour’s belated and flimsy attempt to cost its expensive election promises that it’s hard to know where to start.
“It’s apparent from a first glance at the figures, that Phil Goff, David Cunliffe and Labour would still have to go cap in hand to foreign lenders and borrow billions of dollars more than National over the next four years,” Mr Joyce says.
“According to Labour’s own estimates, it would need to borrow an extra $3.6 billion over the next four years.
“But once again they are trying to pretend they don’t add to net debt by borrowing an additional $6.1 billion for resuming contributions to the New Zealand Super Fund. Once that borrowing and the associated interest is added in, that’s an additional $6.6 billion.
“On the revenue side, they continue to over-estimate their income by around $2 billion over four years. This includes the return of the fudge factor of an additional $620 million from unspecified anti-tax avoidance measures.
“So we are at $12 billion extra borrowing before we even get to the capital and operating spending side, which is where it gets really interesting.
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“Labour have stripped back a number of their policy commitments, and omitted others. For example, there is nothing identified for inflation-adjusting university funding, and funding for policies like youth unemployment, and pay parity for aged care workers has been scaled right back.
“The remaining pot of money for ‘policies yet to be announced’ can’t possibly cover Labour’s promises to extend paid parental leave and restore the previous level of Early Childhood Education spending.
“The National Party will review all those numbers and provide New Zealanders with updates on its Owe Our Future website – www.oweourfuture.org.nz.
“One thing is clear from this early look at Labour’s numbers; under Labour, New Zealand would truly owe our future,” Mr Joyce says.
Authorised by G Hamilton, Level 2, 262 Thorndon Quay, Wellington
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