Struggling families hit hardest by food, GST rises

Rising food prices coupled with the increase in GST will hurt Kiwi families who are already struggling financially, the Green Party said today.

“Food prices are rising and for those on the lowest incomes every increase creates further hardship,” Green Party Co-leader Metiria Turei said.

Figures released by Statistics New Zealand today show that food prices rose by 0.7 percent in September. The price of fruit and vegetables rose by 2.6 percent. The figures do not include the impact of the 1 October GST rise to 15 percent.

“Even before GST went up, many families were struggling to cover the basics. With the impact of John Key’s GST increase, the fragile household budget will be under even more strain,” Mrs Turei said.

“The 1 October tax changes favour those with the highest incomes. They are no help to the thousands of people working hard for a living who still can’t pay the rent or afford healthy food for their families.

“New Zealanders who are struggling to get by don’t deserve to have this burden placed on them while the wealthiest households get big tax cuts.

“These changes will widen the gap between the haves and the have-nots in New Zealand. This gap is already one of the widest in the OECD.

“John Key’s Government knows that inequality hurts everyone, but is turning a blind eye to the reality of life for ordinary families struggling to get by.

“Instead of slapping families with a GST increase, the Government could choose to invest in real jobs, safe housing and income support for families who need it the most,” Mrs Turei said.

Reference:
Food price index release for September 2010: http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/FoodPriceIndex_MRSep10.aspx