English long on rhetoric, short on solutions
Finance Minister Bill English’s first so-called major speech of the year was long on rhetoric and short on solutions, offering nothing but de-regulation and tax cuts for National's mates while pushing up GST for everyone else, says Labour Finance spokesperson David Cunliffe.
“Much of his speech contained little substance, rehashing infrastructure announcements already made dozens of times (Kopu Bridge), and restating deregulation as a cure-all for the country's woes,” David Cunliffe said.
"That was tried and failed in the 1990s. New Zealand does not need or want a return to the failed policies of the past.
"Mr English's attacks on the previous government's record were juvenile and desperate. Fifteen months into a new government, the public expect more than blame shifting and cliches. They would prefer to see some broadband actually laid, or some real decisions made, instead of more dithering and name-calling."
David Cunliffe said Mr English had confirmed that his chief focus in May’s budget will be aligning the trust and top personal tax rates, as a step toward the medium-term goal aligning the company, top personal and trustee rates.
"He has focused on reducing the top tax rate, and reassuring New Zealand’s top earners that huge increases in their income will be announced in the May budget.
“The only reassurance for hard-working low and middle-income Kiwis, beneficiaries and superannuitants is that they will supposedly be ‘compensated’ for the GST increase," David Cunliffe said.
"However Mr English's admission that GST would add 2% to inflation (which may not be compensated) makes this look increasingly unlikely. The vast majority of Kiwis can’t get ahead on a promise that they may or may not be worse off after May.
“When the Finance Minister chooses his first major speech of the year to reassure his mates that they will get their tax cuts because ‘aligning the trust and top personal rates is the most important issue’, most Kiwis struggling to make ends meet are justified in feeling angry at the unfairness of the widening gap between haves and have-nots,” David Cunliffe said.
"Worse, it is obvious from this speech that the rhetoric about exporting more, saving more and investiing more, is not matched by substance or strategy.
"A real strategy for growth and jobs would place more value on the skills, technology and capital needed to drive productivity and value.”
