Promise To Superannuitants Hollow And Cynical

Superannuitants will not receive enduring benefit from National’s tax cuts for our wealthiest earners, and will still be paying higher GST on basic essentials long after National’s so-called compensation package expires, says Labour Revenue spokesperson Stuart Nash.

“National’s numbers simply don't stack up,” Stuart Nash said.
“In the 2009 Budget National’s tax cuts delivered most benefit for those earning most and only miniscule benefit --- about $1 a week --- for superannuitants. In 2010 those earning most will be the long-term winners again.

“However, a 2.5 percent increase in GST will have an enduring impact on weekly grocery bills and every other cost, including rates and rent, faced by superannuitants,” Stuart Nash said.

“Finance Minister Bill English says he will ensure superannuitants are compensated for the GST rise, but it’s a hollow and cynical promise.

“It will take just two years or so for the effects of promised compensation to disappear from back pockets, but meanwhile the grocery bill will continue to get higher every week,” Stuart Nash said.

“Superannuitants will be paying higher prices long after the compensation from Mr Key is gone. The compensation has an expiry date. Under National, tax cuts for the top earners have no expiry date.”

Stuart Nash said the problem for superannuitants would be made worse by other price increases. “A recent survey of small businesses showed many prices may jump five percent or more as small businesses set out to claw back margins they claim have been eroded in the past two years.

“This is bad news for the 70 percent of Kiwis, including superannuitants, who earn less than $40,000 a year, but well-off Kiwis, like Mr English, who is about to get a $300 a week cut in his tax, won’t worry about the GST or other price hikes.

“Those on fixed or low incomes don’t have that luxury. Budget 2010 will hurt the many and benefit the few.”

ENDS

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