John Key MP
National Party Finance Spokesman

12 May 2006

Over-sell on KiwiSaver slammed by Treasury

“Finance Minister Michael Cullen should apologise to New Zealanders for continuing to oversell the benefits of KiwiSaver against all advice,” says National Party Finance spokesman John Key.

“Michael Cullen’s credibility is in tatters. How can New Zealanders now put any faith in what he or Helen Clark says?”

He is commenting on Treasury advice which said Labour’s claim that KiwiSaver will boost the country's overall savings or help reduce the current account deficit - claims continued to this day by Finance Minister Michael Cullen - are wrong.

“What we’ve got here is a complete breakdown in the relationship between the Finance Minister and his closest advisers in Treasury. Michael Cullen is now routinely ignoring their advice and adopting an ‘I know best’ approach.

“This is more dangerous arrogance from a Government that described Treasury’s tax advice as an ‘ideological burp’.

“He’s ignored Treasury advice on tax, he’s ignored the advice on payroll tax, and now we know he’s ignored them on KiwiSaver too.

“Michael Cullen must stop misleading New Zealanders.

“Dr Cullen and Ms Clark will tell New Zealanders anything so they don’t have to face up to the harsh reality of their dangerous ideological obsession with redistribution rather than growing the economy.

“Tax cuts are affordable, and unless we start providing the right incentives for people to get ahead through their own efforts, we will continue to bleed good talent to Australia.

“For the sake of us all, this Budget must be Dr Cullen’s last,” says Mr Key.

ENDS

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