Kiwis won’t be ‘saying cheese’ to budget: MP

Taranaki-King Country MP Shane Ardern says Labour’s ‘block of cheese budget’ won’t help the constituents who are coming to him because they are struggling to survive with the increased costs in fuel, food and power.

‘‘Kiwis have waited nine long years for Michael Cullen to admit he’s wrong and deliver tax cuts. And after those nine long years he says he will give the average wage earner just $16 a week - the equivalent of a family-size block of cheese a few weeks out from the election.’’

Mr Ardern says no other finance minister in New Zealand history has had the opportunity to cut taxes like Michael Cullen.

‘‘Labour has squandered the golden economic weather of the past nine years, and failed to future-proof the economy. Their budget is all about survival. It’s not about addressing the real priorities of Kiwis or about our country’s future direction.’’

Mr Ardern says if National comes to power later this year, tax cuts will be the top priority.

‘‘Tax cuts are an essential part of our fivepoint plan for the economy.’’

Mr Ardern says this plan will include:

• An ongoing programme of personal tax cuts. ‘‘We will put the right incentives in place to encourage people to work and save and get ahead under their own steam. Boosting aftertax wages will help stem the flow of Kiwis overseas. It will help keep the skilled workers we need to grow our economy and improve our public services.’’
• Bringing discipline to government spending. ‘‘The government should be just as careful with your tax dollars as your household is with the weekly budget. National will direct spending away from low-quality programmes that push up inflation, towards frontline services like doctors, nurses, teachers, and police.’’
• Tackling bureaucracy and red tape. ‘‘We will cap the number of bureaucrats in the core public service, and we will reform the Resource Management Act and the Building Act. We want to cut the high compliance costs that bog down everything from growing a business to building a deck.’’
• An unwavering focus on lifting education standards. ‘‘We will introduce National Education Standards in primary and intermediate schools to improve literacy and numeracy. We will boost trades in schools and encourage teenagers to get the skills they need to make the most of themselves.’’
• Boosting infrastructure to aid growth. ‘‘We have a $1.5 billion plan to bring ultrafast broadband to businesses, schools, hospitals, and homes. And we will work with the private sector to substantially boost investment in roads, electricity, and water.

‘‘Our plan for the economy is focused on getting New Zealand onto amuch stronger path of economic growth and opportunity, and building a wealthier future for all New Zealanders.’’

Te Awamutu Chamber of Commerce president Chris Smith says there are aspects of the budget that will be welcomed by business.

‘‘The tax cuts element has been welcomed by Northern Region Chambers of Commerce as going some way to restoring the purchasing power of all New Zealanders, given increases in food, fuel and interest rates. ‘Unfortunately the opportunity that has been lost was the chance to align both corporate and personal tax rates to those in Australia. This in time would have reflected in New Zealand’s standard of living and skills retention.’’

Budget initiatives identified as being positive for business and an investment in the economy included: increased funding for Ministry of Foreign Affairs; Broadband - $500m fund to accelerate broadband access to business, local government and schools and to extend to under-served regions; simplification of tax compliance and therefore paperwork for SMEs; Skills strategy.