Government fails to control inflation and prices skyrocket

Tue, 14 Jun, 2022

“The ramifications of the Government’s irresponsible spending are continuing to hit home with Kiwis paying more at the checkout,” says ACT’s Leader David Seymour.

“Stats NZ’s Food Price Index shows that food prices rose 0.7 per cent in just the last month, annualised this is a whopping 8.4 per cent. Despite the Government’s performative finger wagging in recent weeks grocery food prices increasing 1.2 per cent in the last month, annualised at 14.4 per cent.

“Compared with a year ago Kiwis are paying an extra 6.8 per cent across all food categories, with Fruit and vegetables alone costing 10 per cent more. This data shows that things are continuing to get worse at an even steeper rate.

“New Zealand is a food superpower. New Zealand farmers grow enough food for eight times our population. We shouldn’t be in a position where we’re paying through the teeth to put food on the table, and it’s not the farmers and growers making any money.

“The problem is the Government’s war on businesses and relentless borrowing and spending has fuelled domestic inflation that has crept into our most productive sector. Inflation is too much money chasing after too few goods, and this Government has borrowed, printed and spent too much money.

“The PM and Finance Minister are focussed on the PR spin around cost of living and blaming global events like the war in Ukraine. Meanwhile everyday New Zealanders who are struggling to make ends meet are getting forgotten. They deserve straight talk and common-sense solutions rather than disingenuous spin designed to distract from the mess they’ve created.

“It’s time to stop wasteful spending that pumps money into the economy without producing goods and services to buy. Too much money chasing too few goods means inflation.

“Those who rely on working to pay rising bills need hope, this Government isn’t giving it to them. Under Labour, the gap between the median wage in New Zealand and Australia has grown $6,600 – and there appears to be no strategy to make things better.

“We need real change. That means reducing tax, bureaucracy and waste, and maximising opportunity.

“ACT would cut the 30 per cent income tax rate to 17.5 per cent. We would lower the barriers to employment and make it easier for small businesses to hire. Our regulatory reforms would ease the burden on farmers. Our plan for infrastructure and housing reform would get New Zealand moving again.”