What does Opportunity know that Treasury doesn’t?

Responding to Opportunity leader Qiulae Wong saying she would allow net core Crown debt to exceed Treasury’s prudent debt limit of 50 percent of GDP, Taxpayers’ Union spokesman James Ross said:

“By Opportunity’s own claims, its tax package would cost New Zealanders more than $1,800 per household a year. On top of that, it wants to blow through Treasury’s prudent debt ceiling. What does Wong know that Treasury doesn’t?”

“Treasury doesn’t set these warnings for the fun of it. We’re a small, trade-exposed economy with low domestic savings and some of the highest borrowing costs in the developed world. That headroom is there to make sure we can keep the lights on when the next big earthquake, pandemic, or recession hits.”

“‘Other countries have more debt, so why can’t we?’ is childish logic. New Zealand’s government debt is already on track to hit $162,000 per household by the end of the decade, up from $29,000 in 2008. The interest bill alone will be nearly $6,000 per household.”

“Qiulae Wong says refusing to stick billions more on the national credit card risks New Zealand going ‘backwards’. Tell that to families already battling the cost-of-living crisis when the interest bill lands on their doorstep.”