Nick Smith - Nelson MP, Minister National Government

Street wrong on living costs says Smith

Maryan Street is just playing politics with her claims over living and power costs, standard of living, and who got the lions share of tax changes, Nelson MP Nick Smith says.

"Ms Street is taking Nelsonians for fools in expecting them to believe her selective survey of 142 people over the scientific and independently published figures from Statistics New Zealand on income and living costs," Dr Smith said.

"The latest cost of living data shows inflation has been 4.5%, of which 2.5% is the increase in GST which was compensated for with income tax reductions and benefit increases. In contrast, inflation in the last year of the Labour Government, which Ms Street was part of, was 5.1%, without any compensation.

"Ms Street is also skating on thin ice over her claims on power prices. These grew by 72% over the nine years of Labour, or 8% a year. Under National, power prices have gone up 5% a year which included the GST increase and the 5% costs of the Emissions Trading Scheme. Ms Street is being hypocritical in highlighting power price increases when she voted against National's amendments that halved the cost impact of the ETS. With Labour committing to reversing these changes, should they form the next Government, she should be upfront in saying power prices would go up under Labour's climate change policy.

"Ms Street is also playing fast and loose with the facts in claiming that the Government "had given the lion's share of the tax cuts to the wealthy". Two-thirds of the $3.7 billion tax cuts went to people on incomes below $48,000 or less than the average wage. Independent analysis confirmed that all income groups, except those with property investments, were better off from National's tax switch.

"The long-accepted measure of the standard of living on which there is a consensus for basing New Zealand Superannuation payments is the real net after-tax wage. This grew by 2.5% in the last year, and 10% in the two and a half years since National came into office. It grew by only 4% in the nine years Labour was in office and in far easier economic times.

"Ms Street also conveniently overlooks that Nelsonians are enjoying the lowest interest rates in forty years, which is having a very positive impact on many family budgets.

"The Government knows it is difficult economic times and that both families and businesses are under pressure. However, politically motivated surveys and false claims trying to make it look worse do nothing to help Nelson lift out of recession," Dr Smith says.

ENDS