Public Services

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May 2008

Comment

Budget 2008 showed that relatively modest tax cuts nevertheless use up a large amount of money. The annual average cost of the tax cuts is $2.7 billion. John Key had been quoted prior to the Budget as saying that National would have bigger tax cuts. Last October I commented in this Bulletin that for the National Party it seemed that no matter what the question is - the answer is always tax cuts. That stance seemed to wilt somewhat within hours of last week's budget. But - a bidding war on tax cuts is still possible - and carries some real risks.

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This Fact Sheet was prepared for the July 2002 General Election campaign.

Progress made under the current Government

The state sector plays a critical role in the lives of New Zealanders. It employs about 250,000 people and accounts for over a third of GDP. The public provision of high quality health, education, housing and other services has a strong influence on people's living standards and sense of wellbeing. Those services, underpinned by a social security system, are often referred to as the 'social wage' and are essential to ensure that working people are able to participate in their communities.

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From the CTU policy book, produced November 2000.

5. STATE SERVICES STRUCTURE AND ORGANISATION

5.1 The State Sector

5.1.1 The NZCTU believes that a strong and effective state sector, motivated by the goal of service to the community, is both desirable and necessary, and that the achievement of such a state sector is a goal which all trade unionists and socially concerned individuals should seek to attain.

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