John Key - National Finance Spokesman

10 January 2005

NZers work harder to keep state sector going

National's Finance spokesman, John Key, says New Zealanders returning to work this week will be disturbed to learn that they will have to work what amounts to almost an extra week this year to meet the cost of a growing bureaucracy.

Information obtained from the office of the Minister of Revenue shows that the average New Zealand worker now needs to work for 54.4 days in the year to pay their tax bill, compared with 50.6 days in 2000.

"Under Labour, bureaucracy is spiralling out of control and New Zealanders are paying for it with ever-increasing taxes," says Mr Key

"With spending projected to balloon by a further $22 billion over the next four years, we can expect the state sector to become even more bloated, further perpetuating the over-taxation of New Zealanders."

On top of that, figures obtained by Mr Key show that employee numbers in the wider state sector have increased by 14%, up from 265,000 in 1998 to 302,000 last year.

The wage bill for public servants within key Government departments has also increased from $2.527 billion in the 1999-2000 year to $3.25 billion last year. An increase of $750 million.

Mr Key says that figure does not include teachers, nurses and other professionals working indirectly for Government departments.

"New Zealanders want an effective and efficient state sector. What Labour doesn't realise is that bigger isn't necessarily better."

ENDS

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