‘Cost of promises $632M’

Press, 30 July 1985, Page 3

‘Cost of promises $632M’

PA Wellington Promises made by the Leader of the Opposition, Mr McLay, at the National Party conference would cost taxpayers $632 million, said an Associate Minister of Finance, Mr Prebble, yesterday. Mr McLay had promised to spend an extra $l3O million by eliminating the surcharge on national superannuation. He had also said National would restore support for farming. Under the last National Government, that support was costing the taxpayer $352 million, Mr Prebble. National was also promising to move to make “land speculation tax-free” by

abolishing the Income Tax Amendment Act No. 2, 1982. That would cost New Zealand $l5O million in 1982 dollars, Mr Prebble said. “Only Mr McLay could promise to cut Government spending, and in the same sentence, promise to boost the deficit by $632 million.” Mr Prebble said he was amazed at Mr McLay’s saying that as Minister of Justice he had cut spending. “While he was Minister of Justice from 1979-84, infla-

tion totalled 55.6 per cent, but Justice Department spending increased 79 per cent — an increase in real terms of 24 per cent,” Mr Prebble said. Justice spending went from $77 million in 1979-80 to $l3B million in 1983-84. “The National Party in its last nine years totally failed to control Government spending, and Mr McLay was one of the worst offenders,” Mr Prebble said.