Rising food prices unpalatable

David Cunliffe Wellington December 13 The latest food price index underlines what a difference Labour’s policy of scrapping all GST on fresh fruit and vegetables will make for struggling Kiwi families.

Today’s index, released by Statistics New Zealand, shows that food prices rose 4.8% in the year to November 2010.

The really significant factor, however, is that within the overall food prices index, grocery food rose 5% and fruit and vegetables a staggering 11.9%

For Kiwi families who have lost jobs, or received no pay rises, this is creating a real problem.

Prime Minister John Key’s tax switch has helped his wealthy mates, but struggling families, who have missed out on the tax cuts but are paying the 20% increase in GST, are finding it a crippling burden buying healthy, fresh food.

While vegetable prices fell in November because of the time of the year, that relief will be short-lived.

Labour’s policy of scrapping all GST on fresh fruit and vegetables will make a real difference to the lives of tens of thousands of Kiwi families. There are the tens of thousands of people to whom Mr Key does not give a toss.

David Cunliffe is Member of Parliament and Finance Spokesman of the Labour Party.

-The above was a from a Press Release