Labour Contemptuous Of Working New Zealand

Helen Clark and Labour's disdain for working New Zealanders is becoming increasingly apparent, Treasurer Rt Hon Bill Birch said today.

"Over the last two days Helen Clark, and now Labour's chief whip, have made quite ridiculous comments about the economy and tax cuts.

"It's one thing for Labour to be under pressure because of its policy of increasing taxes.

"But it is hard to believe that someone who desperately wants to be Prime Minister thinks leaving money in workers' pockets is "frittering it away".

"What is scary is that Ms Clark's words weren't a foolish off-the-cuff remark. She put them in a supposedly considered press release, which her whip is now covering.

"Over 1,160,000 workers received more than $5 a week from this year's tax cuts. What are they and their families to make of these comments?

""Does Helen Clark want to take their earnings back from them?

"This year's tax cuts, coupled with those in 1996 and increased family assistance have delivered $98 a week extra in the hand for a one-earner family on the average wage."

"The National government believes that is a very positive outcome.

"Helen Clark would rather have that money and spend it herself.

"Just like Jim Anderton she has the misguided belief that the government has first call on people's incomes.

"For them, your pay-packet is not what you have earned but what they are prepared to leave you with.

"Let's hope Michael Cullen, Phil Goff and Annette King can convince Ms Clark to drop the Alliance line."

Mr Birch said tax cuts are not government spending.

"They are about not taking money off earners in the first place."