Decision ‘05: quality public services or a $10 a week tax cut
National’s plans to slash public services would end up costing workers and families more than they stand to gain from
the tax cuts being promised, says the Public Service Association (PSA).
PSA National Secretary Richard Wagstaff said National’s tax promises are only affordable if public services are slashed.
“Our research tells us quite unequivocally that New Zealanders support improving public services, not slashing them,
even when tax cuts are put up as the alternative proposition.
“National’s tax cuts package would deliver about $10 per week to more than half of all taxpayers (66 per cent).
“However, missing from the party’s announcement today is the list of public services National intends slashing or
abandoning to help generate the $10 billion it would need to fund its package.
“With these kinds of massive spending promises being thrown around it is simply not credible for any political party to
claim that core public services will escape the razor gang.
“For every public servant, there are five employees in the education, health and defence forces. It is impossible to
exempt those sectors from cuts if tax cuts are to be funded by service cuts.
“National’s tax policy also fails to restate its previous commitment to actually employ more public servants – prison
officers, police, border security staff, and so on.
“Sitting behind National’s tax policy are a further raft of policy promises which would see workers worse off – policies
like the privatisation of ACC, weakening of health and safety provisions and the gutting workers rights.
“The tax policy announced today does not add up and it hides National’s real agenda to reduce the size of the government
permanently.
“It’s time for the party to lay all its cards on the table – not just those that suit its case,” Richard Wagstaff.