Irresponsible spending would put the recovery at risk

"Another cut to the official cash rate means more money in the pocket for households, but let's not take it for granted," says ACT Leader David Seymour.

"Mortgage rates are down because inflation is under control. And inflation is under control because this Government has, for two years, applied some basic discipline to its spending.

"We started with inflation at 5.6 per cent, the OCR at 5.5, and mortgage rates above seven. Since then, ACT has led the effort to turn things around, cutting wasteful spending, negotiating down the price of our coalition partners' policies, and pushing back on proposals to borrow and bribe.

"For now, we've broken the spending addiction, but an election year risks sending us into a relapse.

"The parties that borrowed $115 billion and left us with nothing but inflation will try to bribe their way back into government. Their whole election strategy hinges on voters having short memories.

"When Labour and the Greens make spending promises, that puts pressure on other parties to offer expensive goodies of their own. And every debt-funded spending promise is a promise to put hard-won relief at risk.

"ACT, however, will hold the line. Our basic view is that government should be as responsible with taxpayer money as the households paying the bills are.

"If we want to keep mortgage rates and prices down, we must spend wisely."