PSA MEDIA RELEASE
August 4, 2008
For Immediate Use
Which Services Will National Cut To Pay For Tax Cuts?

“Now that John Key has ruled out borrowing to pay for its tax cuts, the people of New Zealand need to know which services National will cut to pay for its tax cut programme,” says Public Service Association National Secretary, Brenda Pilott.

Mr Key announced at National’s annual conference on the weekend that the party will borrow an extra $750 million a year for infrastructure but will not borrow to pay for its tax cuts.

Mr Key said that National will provide two tax cuts by April 1, 2010 on top of the October tax cuts provided by the Budget.

“If Mr Key has ruled out borrowing for tax cuts, that means National with have to make major cuts in public services to pay for its programme of having three tax cuts in 18 months,” says Brenda Pilott.

John Key has said National intends to offer tax cuts of more than $50 a week on average for all taxpayers. That would cost $5 billion.

“The reality is New Zealand has a small public service,”says Brenda Pilott.

“There are 42,000 staff in the core public service. Even if National sacked all of them it still would not deliver the $5 billion worth of tax cuts that Mr Key has promised.”

“National needs to come clean and tell New Zealanders which public services it will cut to pay for its tax cuts,” says Brenda Pilott.

ENDS

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