Labour’s recipe for economic debacle

Labour is a party without a plan.

Instead, they have a collection of election gimmicks and slogans, like GST off bananas, all of which would come with a hefty price tag.

Together these would create a $16 billion hole in the government’s accounts over the next 4 years alone – and far more over the longer term – which would have to be funded through borrowing.

Labour knows that.

So they have suddenly decided that every New Zealander can work another two years longer, to pay for some of their spending spree.

Even then, their numbers are a long way from adding up, because their retirement changes don’t start having a significant effect for at least 15 years.

Where does that leave us?

Labour would simply borrow more, spend more, tax more, and impose more costs on every business in the country.

Now they now want to push back everyone’s well-earned retirement.

Why would you vote for that?

Why would you vote for a Party that thinks the answer to a global debt crisis is more debt?

It just does not make sense.

But it is certainly true to form.

When Labour was last in Government, they increased their spending by 50% in only five years.

In Opposition, they have opposed every piece of spending restraint we have introduced.

Yes everyone.

Now, their election promises consist of – you guessed it – more spending.

When it comes to loading costs onto business, they are in a league of their own.

These include a big increase in the minimum wage, a compulsory KiwiSaver policy that hugely ramps up costs to employers, a new Capital Gains Tax on all businesses, a more expensive Emissions Trading Scheme (ETS), an irrigation tax on farmers, more transport taxes, and a 1970s Industrial Relations Policy; all of these would add up to big cost increases for the 500,000 businesses in New Zealand.

John Key is Prime Minister of New Zealand. The above is a short piece extracted from his speech at the Campaign Launch of National Party at Sky City Convention Centre in Auckland on October 30, 2011. To read or hear his full speech, visit www.national.org.nz

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