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National’s desperate tax promise: severe cuts that put COVID recovery at risk

National’s reckless tax policy will see harsh cuts to public services like health and education, and will put New Zealand’s COVID recovery at risk.

To afford their chaotic tax and debt policy, National will need to cut billions of critical investments in health and education, at a time when we’re more reliant than ever on our essential public services. They will also need to empty the Government’s COVID Response and Recovery Fund - the rainy day fund for future COVID resurgence – in order to offer a desperate tax cut to voters this election.

“New Zealanders need a stable and prudent path to COVID economic recovery but Judith Collins and Paul Goldsmith are putting the economic future of this country at risk with a series of ill-thought out and desperate policies,” Grant Robertson said.

“Once again the new National Party leadership prove they have left behind the considered and moderate approach that John Key and Bill English took to the economy.

“It beggars belief that in the middle of a pandemic the National Party is planning to gut the money set aside to protect New Zealanders in case of another major outbreak of COVID-19.

“We carefully put aside $14 billion to look after New Zealanders’ health and wellbeing and now National wants to put that at risk. This policy reeks of desperation as National races to borrow money to pay for a $4000 temporary tax cut for Judith Collins.

“National has also changed tack again on debt and taxes in this announcement. They now have as many positions on the economy as they do on the border. After three different leaders since the COVID crisis began, National, backed by a radical ACT party, are a risky alternative.”

New Zealand needs a stable and predictable Government right now, not the irresponsible path National is proposing. Labour’s strong leadership and balanced plan for recovery and rebuild will keep New Zealand moving in the right direction, while protecting Kiwis, supporting businesses and growing the economy.

Labour’s five-point plan is focused on supporting New Zealanders through the pandemic while continuing our economic recovery, and it’s already in motion. It’s creating jobs, supporting small businesses, and investing in essential infrastructure like hospitals and roads right around New Zealand, so together, we can rebuild better. There will be challenges ahead, but thanks to Labour’s careful economic management, we’re now in a stronger position than many other countries.

Labour will continue to manage the economy responsibly. And right now, being responsible means investing in our people, businesses and communities during these challenging times, so we can keep our economy moving as we rebuild New Zealand together.

Read more about Labour’s plan to keep New Zealand moving here.