John Key MP National Party Finance Spokesman

06 May 2005

Labour can't hide the size of its surplus

"Not even Michael Cullen's creative accounting can hide the level of overtaxation in New Zealand," says National Party Finance spokesman John Key, responding to the latest set of Treasury numbers.

"Even Labour's attempt to use the cash position to disguise the size of the surplus is coming undone. The cash surplus is running at $3.3 billion - some $400 million higher than forecast in December, and $2.1 billion higher than the same time the previous year.

"Treasury warns that the $400 million variance is likely to be even higher saying, 'it is likely to be higher if some of year to date expenditure delays and tax revenue continue'.

"Labour is now sitting on an $8 billion surplus in the nine months to 31 March - up $1.7billion from the December forecast. Total tax revenue is $3.2 billion higher than the same time last year. "On an individual tax basis the situation equates to an extra $370 for every taxpayer, even allowing for the extra 81,000 thousand people now in employment.

"Only National can be trusted to lower tax for working New Zealanders," says Mr Key.

ENDS

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