Key minus English equals 2X Fonterra
Mr Key should stick to being a money market speculator rather than continuing to cut across Mr English's attempts to be more fiscally conservative.
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The effect of continuing conflicting statements over fiscal policy should raise alarm bells, Finance Minister Dr Cullen warned today.
"If the two National leaders were in charge right now they would be injecting two times the annual effect of the increased Fonterra payout that Reserve Bank governor Alan Bollard cited as the major reason behind yesterday's increase in the official cash rate," said Dr Cullen.
"Today on Morning Report Mr English made clear that National would be looking for half a billion dollars a year in spending cuts. Mr Key, however, continues to push tax proposals which have an initial full year effect of $2.5 billion a year.
"This shows yet again the hollowness of Mr English's claims that National would have less impact on monetary policy than the Labour-led government.
"It is quite clear the overall position of a National government would be more fiscally stimulatory than this government.
"What Mr English has again failed to tell voters is how he would have cut half a billion dollars out of this year's Budget.
"Half a billion buys you each year:
The meningococcal B vaccine roll-out ($50 million)
Elective surgery for 10,000 extra New Zealanders ($50 million)
Pay increases for nurses (annual cost of recent settlement $140 million)
Cheaper doctors visits for those over 65 ($50 million)
7 regional hospitals ($30 million each)
"Perhaps Mr Key should stick to being a money market speculator rather than continuing to cut across Mr English's attempts to be more fiscally conservative.
"Mr Key today talks about an 80 cent dollar and yet fails to offer any policies to take pressure off the dollar. In fact if National were in government today, its tax cutting, borrow and hope policies would put more pressure on the Reserve Bank to raise interest rates higher, pushing the dollar up further," said Dr Cullen.
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The effect of continuing conflicting statements over fiscal policy should raise alarm bells, Finance Minister Dr Cullen warned today.
"If the two National leaders were in charge right now they would be injecting two times the annual effect of the increased Fonterra payout that Reserve Bank governor Alan Bollard cited as the major reason behind yesterday's increase in the official cash rate," said Dr Cullen.
"Today on Morning Report Mr English made clear that National would be looking for half a billion dollars a year in spending cuts. Mr Key, however, continues to push tax proposals which have an initial full year effect of $2.5 billion a year.
"This shows yet again the hollowness of Mr English's claims that National would have less impact on monetary policy than the Labour-led government.
"It is quite clear the overall position of a National government would be more fiscally stimulatory than this government.
"What Mr English has again failed to tell voters is how he would have cut half a billion dollars out of this year's Budget.
"Half a billion buys you each year:
The meningococcal B vaccine roll-out ($50 million)
Elective surgery for 10,000 extra New Zealanders ($50 million)
Pay increases for nurses (annual cost of recent settlement $140 million)
Cheaper doctors visits for those over 65 ($50 million)
7 regional hospitals ($30 million each)
"Perhaps Mr Key should stick to being a money market speculator rather than continuing to cut across Mr English's attempts to be more fiscally conservative.
"Mr Key today talks about an 80 cent dollar and yet fails to offer any policies to take pressure off the dollar. In fact if National were in government today, its tax cutting, borrow and hope policies would put more pressure on the Reserve Bank to raise interest rates higher, pushing the dollar up further," said Dr Cullen.