Surprise Cut First Step Only
ACT leader Richard Prebble welcomed today the Reserve Bank's surprise cut in interest rates.
"This is confirmation of what I have been saying all year - that the economy is slowing. To sustain economic growth
it's been clear for some time there was a need to change economic policy.
"Monetary policy changes would be much more effective if they were coupled with a change in the budget.
"The Government's proposal to overtax the country by $4 billion is economically counter-productive.
"The economy would receive a much needed boost with a well-designed tax cut along the lines of the McLeod tax report
recommendations to return the surplus to taxpayers," said Mr Prebble.