Hipkins' Loose Talk on Lifting Debt Cap is Economic Vandalism

The Taxpayers’ Union is slamming Labour Leader Chris Hipkins for refusing to commit to the Government’s 50 percent debt ceiling on RNZ's Moaning Report — a reckless move that could spook credit rating agencies and raise borrowing costs across the board.

Taxpayers' Union Executive Director Jordan Williams said:

“Even Grant Robertson had the sense to maintain a firm debt anchor. Chris Hipkins now seems to be throwing that away, sending the message that a future Labour Government would be open to borrowing beyond what’s prudent, affordable, or sustainable.”

“Markets take this kind of talk seriously. If Labour won't commit to a debt limit, credit agencies may well react by downgrading New Zealand’s rating. That means higher interest costs not just for Government, but for every Kiwi household and business trying to borrow.”

According to the New Zealand Debt Clock (www.debtclock.nz), Government debt currently sits at $190.9 billion, or $93,811 per household, and is growing every second.

“Every household in the country is already carrying nearly $94,000 in Government debt on its back. The very last thing New Zealand needs is a Prime Minister-in-waiting signalling he’s ready to make that burden even heavier.”

The Taxpayers’ Union is calling on Labour to clarify its fiscal policy and immediately recommit to the 50% debt ceiling.

“Lifting the cap isn’t a ‘mature conversation’. It’s a dangerous flirtation with economic irresponsibility and the costs will fall on taxpayers.”