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Warfare within National's support parties over spending cap

Labour Party

Thursday 30 August 2012, 9:14PM

By Labour Party

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Peter Dunne and John Banks are at loggerheads over ACT’s cherished spending cap and National’s policy is in disarray, says Labour Leader David Shearer.

“Act’s spending cap was a centrepiece of its agreement with National. But Peter Dunne has slammed it as ‘part of an unnecessary right-wing agenda’.

“Three days ago Bill English informed me the Government would not proceed with the spending cap. But today he released a statement from overseas saying the spending cap is back on.

“Bill English has done a complete u-turn in the space of three days and now his support partners Banks and Dunne are having a public spat. This is no way to proceed with a major piece of economic policy.

“Only Act and National support the spending cap. With Peter Dunne dead-set against it, there’s no way the cap will pass.”

 

Letter from Bill English to David Shearer