Credit Cards Have Costs

Helen Clark needs to be reminded what New Zealanders already know - credit cards have costs, Treasurer Bill Birch said today.

"For a start, you can't avoid paying the bill that you charge up." Mr Birch was commenting on Labour's proposal to issue "credit cards" promising more government spending.

"No doubt Ms Clark likes the idea of not having to front up with the cash for her promises.

"Labour refuses to say how much more it will spend, how much more it will borrow, and how much more it will take in taxes.

"The five policies it is promising on tick are superannuation ($101m in its first year then rising), $100m for risky industry, housing ($120m), cheaper tertiary education (capped tuition fee of $2000 costs $142m), and elective surgery ($80m like the Alliance), at a total cost of $643 million.

"So far, Labour says it will only raise taxes on incomes over $60,000 by six cents in the dollar, raising $330 million.

"But its vague promises, including the emergency unemployment benefit for all students ($14m), will cost $657 million in the first year.

"And there is no room for those impulse purchases that credit cards allow for, and Labour's partner will demand.

"Helen Clark may like the idea of a government credit card, but taxpayers will foot the bill.

"Taxpayers also know about the strings attached, like higher interest rates, which come from too many bills from too much spending."