The Reserve Bank’s decision to cut the OCR to 1.50 percent on the back of a slowing economy shows the Government must do more to promote growth, according to ACT Leader David Seymour.
“The world economy is slowing, but the Government’s anti-growth policies are also taking their toll.
“Big hikes in the minimum wage and industry-wide collective bargaining will make firms less competitive.
“The Government has banned offshore oil and gas exploration and turned foreign investors away.
“The Zero Carbon Act could cut growth by between 10 and 22 per cent by 2050.
“The Government also continues to press the case for a ‘fairer’ tax system. We know that means more taxes.
“The Government pays lip service to growth but it has no plan for increasing the size of the economy. Its current approach is simply to divide income and wealth more evenly. That is no recipe for higher living standards.
“The Government should cut low value spending – such as the Provincial Growth Fund and Fees-Free – and use these savings to reduce the tax burden on New Zealanders.
“ACT’s pro-growth policies, if implemented, would deliver higher productivity, income and job growth – low, flat taxes achieved by reducing wasteful spending; tighter welfare requirements so people are encouraged into work; less red tape and smarter infrastructure funding to ensure more houses are built and workers aren’t stuck in congestion; and giving parents and students educational choice that extends beyond their local state school.”