The Pundits Were Wrong
Thursday 25 Jul 2002
Speech to Press Conference, ACT Caucus Room, Bowen House Wellington, 10:30am, Thursday, July 25, 2002
The polls have already proved the pundits wrong. New Zealand has a real election this Saturday.
The choice is between higher taxes and lower taxes, more regulation or less regulation, a stronger economy or a weak
one.
We need as a priority to get New Zealand's growth rate cranked up to four plus percent. That ain't going to happen
under Clark and the Greens.
Michael Cullen is a "tax-and-spend, lets-have-a-little-inflation" politician. He's upped taxes as Finance Minister.
He's upped government spending.
Michael Cullen rejects all advice and analysis. He steadfastly believes that the level of tax has no effect on growth
and has even perversely suggested that higher taxes produce higher growth rates. Michael Cullen is completely swimming
against the tide on this one.
Michael Cullen's answer to our dismal growth is to go soft on inflation. He thinks that by printing money we can all
get richer. The policy is daft. It has never worked. And Michael Cullen has damaged his own credibility and our nation's
by even suggesting it.
After two years of "hard" Labour the average worker's hourly earnings is up only 0.1 percent in real terms. This is
because inflation under Labour has been nudging three percent. It's pathetic. National achieved a real increase in
hourly earnings of six percent.
Cullen will stagnate our economy - the Greens would wreck it. They want an eco-nation. Their transport policy alone
would cause chaos. Their policy is anti-car, anti-road, anti-development and ultimately anti-people. They are proposing
a Road Traffic Reduction Act to cut down on cars and trucks. A ban on all new motorways and highways. They want to
renationalise the railways with petrol taxes being used to subsidise trains and barges. The Greens want higher taxes on
petrol and diesel and special tax on carparks.
It's no wonder that in economic debates Michael Cullen argues more with the Greens than any of the other parties.
Labour propped up by the Greens is not stable - and their policies would be a huge leap backwards for New Zealand.
But the polls show now what ACT has always maintained. We can have a centre right government and prosperous future. ACT
has done well this election.
We have campaigned on the real issues of the economy, law and order, the need for one law for all, and a first class
education and health system.
We have gained a great deal of support. The voters on Saturday will decide the government - not the pundits.
The voters who vote ACT on Saturday won't be wasting their vote. Far From it. They will be doing their bit to keep out
the Greens, to ensure good government, low taxes and a prosperous future for all NZ.
Ends