30 August 2012 MEDIA STATEMENT

Warfare within National’s support parties over spending cap

Peter Dunne and John Banks are at loggerheads over ACT’s cherished spending cap and National’s policy is in disarray, says Labour Leader David Shearer.

“Act’s spending cap was a centrepiece of its agreement with National. But Peter Dunne has slammed it as ‘part of an unnecessary right-wing agenda’.

“Three days ago Bill English informed me the Government would not proceed with the spending cap. But today he released a statement from overseas saying the spending cap is back on.

“Bill English has done a complete u-turn in the space of three days and now his support partners Banks and Dunne are having a public spat. This is no way to proceed with a major piece of economic policy.

“Only Act and National support the spending cap. With Peter Dunne dead-set against it, there’s no way the cap will pass.”

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