Seymour responds to CPI update

"With economic shocks like the fuel crunch, it’s essential that we have resilience as a country," says ACT Leader David Seymour in response to this morning's CPI data release from Stats NZ.

"Economic resilience means not maxing out the country’s accounts, so we’ve got gas in the proverbial tank if we need it to absorb unexpected costs. This means government showing discipline with its spending. A country redlining its accounts is one economic shock away from an inescapable debt spiral or collapse.

"Today Stats NZ released inflation figures showing that in the months leading up to the fuel crunch, the Government’s spending discipline was working. For the year to March, inflation was down at 3.1% from a high of 7.3%. This means that, while often high, prices weren’t running away from you anymore.

"For the three months to March, quarterly inflation was up from 0.6% to 0.9%. The impact of the fuel crunch on prices is already noticeable, and soon it will start to show up in the headline inflation figure.

"I’m proud that ACT has driven billions of dollars in Government savings. It’s not as far as ACT would have gone, but it’s further than things would have gone without ACT.

"If we want to grow New Zealand’s resilience, the Government must continue to show discipline. To seek efficiencies in spending wherever they can be found.

"This is what ACT brings to the table.

"If the parties who want to tax, borrow, and spend hold the reins, economic shocks hit the country in the same way price increases hit someone living paycheck to paycheck – there is no slack in the system.

"ACT will get more value for your tax dollar by spending efficiently, effectively and with discipline. This will let the economy grow and get New Zealand into the best position to absorb the next shock, and the shock after that.

"This is a key pillar of ACT’s plan for a prosperous future for New Zealand."