Wage-tax trade-off part of Govt’s cost-cutting plan, says Mr Falloon

Press, 10 March 1982, Page 3

Wage-tax trade-off part of Govt’s cost-cutting plan, says Mr Falloon

PA Wellington A wage-tax trade-off is included in the Government’s cost-cutting strategy this year, said the Associate Minister of Finance (Mr Falloon) yesterday. Mr Falloon said the target he mentioned last week .of at ’ least a 6.5 per cent cut in costs related to the “total' economic strategy.”. He said that the comment on Tuesday by the Prime Minister (Mr Muldoon) that the Government’s target was 3 per cent, did not mean there was-"division in the Cabinet, j ..... ... “I don’t think he had disowned it (the 6.5 per cent

figure) at all. I think he has further clarified it,” Mr Falloon said. Mr Muldoon was emphatic that 3 per cent was the target, saying that some departments would exceed it and others would not reach it. But Mr Falloon said yesterday: “Six and a half per cent was not regarded really as any minimum in any respect. It was just part of the total review of expenditure that we are undertaking.” Mr Falloon said last week that cuts could go as high as 9 per cent, and he mentioned a target of between ?400 million- and '§9oo million.