Chris Hipkins is stuck in economic la-la land, with his claim that Labour is the more fiscally-prudent party this election following his earlier comments that New Zealand’s economic fundamentals are in good shape, National's Finance spokesperson Nicola Willis says.

“Labour has zero economic credibility. In fact, this Labour Government is the most fiscally-reckless in New Zealand’s recent history.

“After six years of economic mismanagement under Chris Hipkins and Labour, New Zealand’s economy is in recession, inflation is running at six per cent and mortgage repayment rises are too much for many homeowners to handle.

“It’s incredible that Chris Hipkins can say Labour is the more fiscally-prudent party with a straight face. No one believes it, just like they don’t believe his claim that New Zealand’s economic fundamentals are in good shape. He’s on another planet if he truly believes this.

“In 2017, Labour inherited a growing economy and a robust surplus. Since then, government spending has grown by 80 per cent, leaving the books in the red and New Zealand’s economy in recession.

“Labour’s spending claims have never been credible. Government spending is expected to hit $137 billion this year - $20 billion higher than was promised by Labour at the last election.

“As the economy recovered after the pandemic, the Government’s tax take soared. Instead of banking the gains and saving them for a rainy day, Labour layered on more and more spending – breaking all of the spending promises they made at the last election.

“Even once inflation began to rise, the Labour Government’s only response was more spending. They sprayed cash with wild abandon and a total disregard for the impact it was having on households.

“Hundreds of millions of dollars have been spent on failed transport projects like the Auckland Harbour bike bridge and light rail, which have amounted to nothing. Even more was wasted on unsuccessful mergers like Three Waters, Te Pukenga, Te Whatu Ora, and the failed media merger.

“Worst of all, the cost of living payment negligently sent taxpayer money directly into the bank accounts of foreign backpackers and dead people.

“Now, with the economy in recession and the books firmly in the red, the country has nothing to show for all of Labour’s profligate spending. Education spending is up $5 billion per year, yet achievement and attendance have fallen off a cliff. Health spending is up $10 billion, yet wait times have exploded.

“Even Chris Hipkins is now accepting they got it wrong, launching last-minute spending cuts just six weeks before an election.

“Only National has a plan at this election to manage the economy. We will rebuild the economy and get it working for Kiwis, because we know that a stronger economy means higher incomes, lower mortgage rates, and it means New Zealand can afford the quality public services we all rely on.”

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