Embargoed until the Prime Minister
finishes reading her Statement to Parliament

Rt Hon W F Birch
Treasurer

Hon Bill English
Minister of Finance

GOVERNMENT WILL DELIVER LOWER TAXES

The Government will set down the criteria for further tax reductions in this year's Budget, Treasurer Rt Hon Bill Birch and Finance Minister Bill English said today.

"National stands for lower taxes. We want lower taxes to lower costs for business and make our goods and services more competitive internationally.

"Just as importantly, we want people to earn more from their work. We want it to be worthwhile for people to train, to get skills, and to get ahead.

"But just as we did before the tax reduction and social spending programme in 1996, we have to first decide the conditions that will allow us to further reduce taxes, and what changes will take priority.

"We require more information on the economic outlook and the fiscal track, with the next set of official forecasts being prepared with the Budget.

"A strong growing economy, and continuing surpluses - the buffer needed to pay down debt and insulate us from economic shocks - are required before tax cuts can occur," the Ministers said.

"This National-led Government will provide that economic stewardship, and it will provide further tax reductions."