English and Ryall the ultimate odd couple

Finance Minister Bill English and State Services Minister Tony Ryall are at odds with each other, and giving conflicting messages on the level of wage increases over the next four years, says Labour Finance spokesperson David Cunliffe.

“Just yesterday in Parliament Bill English claimed wage increases would outstrip inflation over the next four years --- for those Kiwis lucky enough to have jobs at least, and presumably earning more than the minimum wage,” David Cunliffe said.

“If that is the expectation Bill English is trying to create to reassure all those Kiwis who believe their tax cuts will be gobbled up by increased GST, higher rents, increased early childhood education costs, higher ACC levies and reduced services, he needs to have a word with his colleague Tony Ryall.

“Tony Ryall is urging wage restraint on public servants, and yesterday crowed that the message is being heard as for the past five quarters public service salary movement has been below the private sector’s,” says David Cunliffe.

“In fact, Tony Ryall is going further than just urging restraint. He is making not-so-veiled threats by emphasising the approach that is being taken in countries like Ireland (where public service salaries have been slashed by 15 percent), Canada (where public service wages have now been frozen for more than two years), Spain (which has just announced a 5 percent cut in public sector pay) and Italy (which has just established a three year wage freeze).

“Kiwis have every right to be cynical about the so-called official information contained in National’s gimmicky online tax benefit calculator, but their prospects of getting a fair deal out of the Budget 2010 tax switch might be even dodgier if Tony Ryall had anything more to do with it,” David Cunliffe said.

“An online tax benefit calculator devised by Tony Ryall would be even harder to believe than his protestations that frontline health services aren’t being cut.”

ENDS

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