New Zealand households are struggling to get ahead, based on the latest fiscal and economic projections, making a mockery of the Coalition’s claims to be a ‘transformational Government’, National’s Finance spokesperson Amy Adams says.
“The Household saving rate fell again to be negative 2.6 per cent in the year ended June 30 and are forecast to remain negative in each of the next four years. A negative rate means Kiwi families will be spending more than they earn every year under this Government.
“Before last year’s election under National, New Zealand families were projected to be earning more than they spend over the next four years but now this has reversed.
“Household saving rates are falling as the cost of living is rising and much of the blame can be sheeted home to Government policies and wasteful spending. The Government’s solution is to tax more.
“While the Government has more, New Zealanders have less.”
“Kiwi families are seeing their costs going up while the Government takes more of their income through decisions such as cancelled tax reductions, petrol taxes and policies that are driving up rents and adding to the price of petrol.
“New Zealanders who work hard for themselves and their families deserve to have the opportunity to get ahead. But Kiwis are starting to worry about poor quality Government spending, with massive amounts of money being wasted on things like fees-free tertiary education and Shane Jones’ provincial slush fund.
“Poor government decisions are making it harder for New Zealanders and placing our strong economic performance at risk.”