27 January 2011
Media Statement

Labour promotes fairness; National favours inequality

Labour’s action plan for economic growth and a fairer tax system reflects international thinking that lists economic disparity as one of the world’s greatest threats, says Labour’s Finance spokesperson David Cunliffe.

“Labour’s policy is designed to meet New Zealand’s specific needs, of course, but it is significant that it fits squarely with the latest World Economic Forum Global Risks report that highlights the risk with growing inequality,” David Cunliffe said.

“Under National the wealthy are getting wealthier through tax cuts alone to the tune of up to thousands of dollars a week, while low and middle-income earners are becoming increasingly stretched by rising prices and see little or no relief ahead.

“That is a recipe for division. While disparity in wealth between countries is one of the world’s most pressing problems, disparities in wealth within countries like New Zealand can have a crippling effect on society generally.”

David Cunliffe said Labour’s tax-free zone policy is designed to restore some fairness in the tax system.

“Increased wealth for the few is not reflected in economic growth or more jobs,” David Cunliffe said. “National is now planning to sell Kiwi assets that we have all paid for, but only wealthy New Zealanders and foreign buyers will be able to afford to buy into these assets.

"National has fundamentally mistaken the impact of privatisation on our national debt. When state assets are sold or on-sold to foreign buyers it increases our national private debt; while any short term sweetener to the government's books is eaten away by subsequent rentals and dividends to the new owners."

David Cunliffe said Labour believes that governments must focus on pushing up middle and low-income earners.

“If National was serious about tackling disparities, it would be investing in skills training and education instead of in tax cuts for people who don’t need them.”

ENDS

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