Debt And Increased Taxation - Labour's Guarantee

  • David Carter
Associate Minister of Revenue

"Labour's remarkable record of doubling national debt in six years of Government should be high in the minds of New Zealanders as they look to the election," says Hon David Carter.

The Associate Minister of Revenue told Parliament yesterday that New Zealanders needed to weigh up whether they wanted a responsible National Government who would deliver surpluses or a high spending Labour Government who would run up Budget deficits.

"National's record should be compared again with the Labour Party's record. The Labour Government managed six Budget deficits, one after another. In comparison, National has now delivered six surpluses consecutively."

Mr Carter said tax promises would determine the fate of the next election.

"Whilst the Labour Party makes a commitment to no further tax increases, we have seen a shambolic display as Labour members have unfolded four different fringe-benefit tax policies in as many weeks."

"Michael Cullen is now quoted as saying on 12 May 1999 that he will spend $2 billion extra. In other words, Labour is proposing to spend six times more than it has identified it will raise by increased taxes."

"Labour's promises on tax and spending no longer add up. Helen Clark will deliver absolute chaos to the country - increased indebtedness, increased taxation and increased interest."

Mr Carter said Labour could no longer guarantee they would not raise the top personal tax rate for those in the $35,000 to $40,000 income bracket.

"How else will they pay for all their promises?" he said.