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Soaring prices hitting Kiwi pockets

Contributor:
Fuseworks Media
Fuseworks Media
Phil Goff
Phil Goff

Soaring cost of living figures prove what a struggle it is for hard-working Kiwis to make ends meet, and dramatically expose the impact of National's broken promise on GST, says Labour Leader Phil Goff.

"It's bad enough for low- and middle-income Kiwi families that annual inflation is running at a 21-year high, but National's GST grab has significantly worsened the problem," Phil Goff said.

"If GST had remained at 12.5 per cent --- as National promised pre-election that it would --- then the annual inflation rate would have been 3.3 per cent.

"A 3.3 per cent rate is bad news for families who lost out from National's tax cuts for the rich," Phil Goff said. "A 5.3 per cent increase is simply devastating. No wonder our food banks are stretched to the limit, and quite often beyond their capacity."

Phil Goff said the cost increases were occurring in areas that hurt Kiwis most --- like food (7 per cent), electricity (7.8) and petrol (20).

"Something needs to be done to help struggling Kiwis feel there is some hope," Phil Goff said.

"That's why Labour will take all 15 per cent of GST off fresh fruit and vegetables.

"That's why Labour will make the first $5000 all Kiwis earn tax-free. That will put an extra $1000 a year in the pockets of two-income families.

"That's why Labour will increase the minimum wage to $15 an hour as a priority in our first term."

Phil Goff said the annual inflation rate was the thin edge of the wedge.

"If power prices can go up so much in one year, think what will happen when National flogs off our state-owned power companies overseas, and foreign investors demand increased profits.

"Labour has an economic plan that will create a New Zealand where everyone pays their share --- and where New Zealand becomes a better place for everyone to live.

"Under National, the exact reverse is currently happening for low- and middle-income Kiwis."

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