Act's $650 million cut to business development will destroy thousands of jobs

Act's proposed vicious cut of $650 million in business assistance will destroy thousands of jobs and is flying in the face of Japan and Taiwan's proven path to creating a knowledge based economy.

'Roger Douglas's tax cuts in the mid 80's destroyed 60,000 jobs. Now he wants to destroy another 60,000 by cutting government funding to industry by $650 million,' Alliance Leader Jim Anderton said

'These figures come from the Employers Federation own research which revealed Act's hidden agenda to slash at least $1250 million from government expenditure in the next two years.

'These cuts include a $150 million cut to agricultural based industries at the same time that Act claims it has been rural New Zealand's most dependable voice in parliament.

'Will Act never learn? Government has a vital role to play in partnership with industry to develop new job-rich, high technology industries.

'Alliance policies will create 80,000 jobs by implementing the same policies that have revitalised countries like Ireland and Finland.

'The Taiwanese computer industry sprang from a government plan to build a knowledge economy. This was helped with direct assistance in the way we are suggesting our Economic Development fund will work.

'None of these economies were built on Act style slash and burn free market ideology.

'Act's proposed tax cuts for the rich will just add to the balance of payments crisis and New Zealand's foreign debt because those on high incomes are more like to buy more expensive luxury imports rather then spend money creating jobs.

'Roger Douglas assumes any public money spent on helping industry by government actually costs jobs. Countries such as Taiwan disprove that theory', Jim Anderton said.

Act's planned spending cuts are on page 44 of the Employers Federation report 'Assessment of political party tax policies 1999' which was hailed by Act as 'a major independent study' on Monday.

ENDS

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