Economic growth not reaching Kiwi families - Labour

(Simon Wong)
(Simon Wong)

Kiwi families are missing out on $50 a week while a bigger chunk of the economy is heading to the rich, according to Labour.

At his pre-Budget speech in Wellington today, Labour leader Andrew Little said since the current Government came into power, just 37 percent of economic growth is heading into pay packets.

"Under the last Labour government that figure was over 50 percent," he said.

In real figures, that works out to $50 a week out of the average kiwi family income.

"Fifty bucks a week... That's the real cost to Kiwi families of an economy that's tilted in favour of those at the top.

"This is a result of a Government that is increasingly out of touch and focused on the few at the top."

Mr Little accused the Government of having "special rules for those at the top and a sluggish economy for everyone else," and said that was the reason for growing inequality in New Zealand.

"We know our economy does best when everyone has a stake in it and everyone gets a fair shot to make the most of themselves."

Tax cuts have been ruled out for this year's Budget, which will be delivered by Finance Minister Bill English on Thursday, but Prime Minister John Key has indicated they're still on the table in the future.

It is likely they will campaign on a $3 billion tax cut package for the 2017 election.

"We shouldn't be spending money on $3 billion of unaffordable tax cuts when we could be fixing our health system instead," Mr Little said.

Economic growth not reaching Kiwi families - Labour


Contact Newshub with your story tips: