CTU Media Release

15 February 2012

Budget Policy Statement Preview

The CTU is calling on the Government to make use of the Budget Policy Statement to reverse major elements of the tax switch they have implemented over the last two years.

The Budget Policy Statement is due to be released tomorrow. The BPS is required by the Public Finance Act to outline the overarching policy goals that will guide the Governments Budget decisions, and CTU Economist Bill Rosenberg says it provides an opportunity to state any changes to the Government’s fiscal objectives, intentions and an opportunity to outline how those changes accord with the principles of responsible fiscal management.

“The $2.2 billion that went to the top 10 percent of income earners in tax cuts was clearly a mistake. It has not helped the economy, it has worsened the government’s fiscal position and it is further increasing income inequality,” says Bill Rosenberg.

“The Government had choices when it came to the tax switch. It got it wrong.”

“Now it’s clear that the $2.2 billion would go a long way help with the Christchurch rebuild, build more Housing Corporation houses to meet the housing shortage, raise the caps on tertiary education and industry training to allow more to study and gain skills, provide more support for export industries and R&D, and create more support for people out of work such as boosting Task Force Green, Community Max and Job Opportunities.”

“There needs to be more support for those on low incomes and actions to reduce inequality.”

“More of the same policies just won’t work,” said Bill Rosenberg.

ENDS

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