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Frontline services fall to tax cuts - PSA

Fuseworks Media
Fuseworks Media

The government's admission that it will put the squeeze on frontline services is yet more proof of the damage caused by its tax cuts, PSA National Secretary Richard Wagstaff says.

Finance Minister Bill English today signalled that frontline services will have to be "sorted out", following recent news that the government's financial position is worse than expected.

"The National government's tax cuts in the last term are costing us $5.5 billion a year and are a big part of the reason why the government's books aren't in great shape," Richard Wagstaff says.

"Bill English claims he will be targeting 'inefficiencies' on the frontline, but we've already seen the damage that his so-called 'back office' cuts have done. Staff at, for example, the ombudsman's office are overloaded and unable to cope with the volume of work, so it simply isn't getting done.

"We don't have problems with frontline staff making greater use of technology, as Bill English suggested, but that won't be what actually happens. What will actually happen if frontline services are targeted is that public services will be severely damaged.

"In other words, the public will be paying the price for National's tax cuts - 40% of which went to the richest 10th of New Zealanders."

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