OCR hike should kill Wellington complacency

“Today’s interest rate hike from the Reserve Bank should shake some sense into any remaining deniers: our Government is too big, our economy is too small, and the people are poorer as a result,” says ACT Leader David Seymour.

“Labour’s $10.4 billion budget hole would set off inflation and interest rates like a rocket. Hello again, 2022, with a Labour Government pouring fuel on the fire, inflation and interest rates would be much higher.

“The number one question for Chris Hipkins today is ‘how much higher would inflation and interest rates be if you were in office?” A Government planning to spend $10.4 billion more without the revenue to cover it would launch inflation expectations harder than Peter Beck launches Electron rockets.

“The reality is even the current Government would be worse without ACT—the Association of Consumers and Taxpayers.

“Government needs a party that watches spending like a hawk. Otherwise, inflation will be our future as well as our past. Taxpayers need more ACT in Government to cut more waste, and grow the economy.

“When we entered Government, inflation was high and the OCR was 5.5 per cent. The Coalition has turned the tide with more disciplined Government spending.

“ACT Ministers have driven $14 billion of savings across three Budgets, helping avoid more debt, taxes, and pressure on interest rates. That discipline has helped put the Government on a path back to surplus a year earlier.

“But today’s hike is a reminder that Government is inherently wasteful. The fight against Government waste is never truly won. Keeping inflation down requires discipline year after year, not just when the pressure is on.

“Saving should start at the top. New Zealand cannot afford a Government that is twice the size of similar countries. ACT has released a plan for fewer Ministers, fewer departments, clearer accountability, and a smaller, more efficient Government.

“Just as ACT has set the agenda on No New Taxes, we set the agenda on cutting waste.

“The alternative is a nightmare. Labour is lining up billions of dollars of new promises that risk taking New Zealand straight back towards the inflation hole we have had to dig ourselves out of.

“The next Government needs to keep finding savings with a smaller and more efficient Government that is committed to not putting more taxes on Kiwis.

“If we want New Zealand to be the best little country in the world, we need a Government that is smaller, more efficient, and focused on getting results from every dollar.

“That is how we make life more affordable, grow the economy, and unlock New Zealand’s potential.”