So, we’re poorer as a country after three years of National. Back in 2008, Key used to say we had a growth problem, not a debt problem. Now, we have both. Net government debt has increased a jaw dropping $38 billion under National.
The cost of the interest on this debt is now $10 million a day.
The size of this debt might be small by international levels, thanks to the last Labour government paying down net debt to zero despite National’s constant calls for tax cuts, but its rapid growth, as we’ll see in a later post was one of the major concerns of the ratings agencies when they gave the government a double downgrade.
Labour is committed to getting debt down. We have carefully designed our tax package to bring down debt further than National. By the end of the projection period, net government debt will be $10 billion better under Labour than it would under National.