The Government’s walk needs to match its talk: Fuel support must not fuel more debt

The Taxpayers’ Union is warning that any Government move to support fuel prices amid disruption linked to Iran must be funded through cuts to existing budgets, not by piling more debt onto taxpayers.

Taxpayers’ Union spokesperson Tory Relf says:

“The Government’s walk must match its talk. If ministers are serious about easing pressure at the pump, they need to show how they’ll pay for it, not just slap it on the Crown credit card.”

“Borrowing for relief is no longer an option. With credit agencies now catching up with the bond markets in their dim view of the government’s fiscal credibility, borrowing keeps getting more expensive by the day.”

“Any fuel support cannot be deficit spending. Otherwise, it’s just Grant Robertson 2.0, short-term sugar hits funded by long-term debt. We’ve seen this before with Covid spending, and it ends with a cost-of-living crisis and higher mortgage rates.”

“If ministers are looking for a place to start, they don’t need to look far. The Ministry of Ethnic Communities has struggled to justify its own existence — cutting waste like that would be a far better option than borrowing more.”

“More borrowing to fund fuel support will only pour petrol on the inflation fire. That means higher prices across the board, exactly the opposite of what struggling families need.”

“Kiwis are being forced to tighten their belts. It’s far past time the Government did the same.”