7 July 2005 Media Statement

More bureaucrats, less early childhood education

Finance Minister Michael Cullen says National’s ‘nanny tax break’ means more bureaucrats but less quality early childhood education.

“National has proved Labour right. The first part of their tax policy, the so-called ‘nanny tax break’, will be paid for by cutting education spending with the abolition of Labour’s proposed free 20 hours quality early childhood education in community based centres.

“Many will be worse off as a consequence. But the hidden sting is the growth of bureaucracy.

“To qualify for the nanny tax break will require waiting until the end of the year and putting in a tax return with receipts. But the great majority of the people who would qualify, do not have to file a tax return now.

“This would mean thousands and thousands of extra tax returns to be checked and rebates paid out – and that means more of the pen pushers that National so hates,” Dr Cullen said.

ENDS

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