Monday, June 24, 2024

Mortgage mayhem on the way

From National Party Leader Christopher Luxon

More pain is ahead for Kiwi families up and down the country as New Zealand’s cost of living crisis is forecast to get worse over the coming months.

The Labour Government’s economic mismanagement has allowed inflation to take a firm grip in New Zealand and Kiwis are getting hit in their back pockets, with prices now rising faster than wages for nine quarters in a row.

With every supermarket trip and every stop at a petrol station, New Zealanders can feel that they are going backwards, and it’s clear Labour hasn’t got a plan to turn things around.

So far, Labour’s only response is to spend more money, even though the Government’s reckless and wasteful spending has already contributed to making inflation worse. Government spending is up nearly $1 billion a week since Labour came to office in 2017.

On top of that, their failed immigration settings mean New Zealand is short of workers – including in hospitals and rest homes – which is adding more cost pressures.

Sadly, every family with a mortgage is destined to be among the worst affected as interest rates continue to rise. I feel for all those New Zealanders who are lying awake at night worrying about how they are going to keep their homes after they next re-fix their mortgages. It’s clear we are now paying a huge price for the extensive money-printing, borrowing, and spending under this Government.

New Zealand deserves a government that can deliver a strong economy that gives more opportunity for investment in better public services, like education, healthcare, and housing, and helps support those who need it.

Unlike Labour, National has a plan to fight inflation. We will restore discipline to Government spending, reduce unnecessary costs to businesses, get rid of the bottlenecks in the economy, focus the Reserve Bank on reducing inflation, and inflation adjust tax brackets so Kiwis can keep more of their own hard earned money.

Because NZ Super is indexed to the average after-tax wage, superannuitants would also benefit.

The need for strong, careful economic management has never been more important, and that is what a National Government will deliver. It can’t come soon enough!

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