Dr Cullen is 'borrowing' for tax cuts

National Party Finance spokesman Bill English says Michael Cullen has already broken one of his so-called four tests by 'borrowing' for tax cuts.

In Parliament today, Mr English revealed that the Government's most recent Economic & Fiscal Update (Dec. 2007, p.57) shows that the government is planning to increase borrowing in 2008 by $2.41 billion

This increase in borrowing is very close to the $1.5b the Treasury has set aside for personal tax cuts in Budget 2008 and the $1 billion cost of the business tax cut that has already been booked against this year's budget.

"Michael Cullen is being very slippery on this issue indeed. He is on record as saying 'they'll tell you they're borrowing for anything except the real reason – to fund whatever tax cuts are necessary to buy office'.**

"If that is the standard that he employs for National, then he must be measured by his own standard. He should explain."

Mr English says National will release a comprehensive fiscal policy later in election year.

"We will maintain prudent levels of debt."


**Michael Cullen, 5/11/2007, Address to the New Zealand Labour Party Conference