National will fast track a second round of tax cuts and is likely to increase borrowing to pay for some of its spending promises, the party's leader John Key says.National are trying to argue that this isn't the same as borrowing for tax cuts
But Mr Key said the borrowing would be for new infrastructure projects rather than National's quicker and larger tax cuts which would be "hermetically sealed" from the debt programme.
In opening remarks to the party's annual conference in Wellington today Mr Key said National would incorporate Labour's October 1 tax cuts, bring forward a second round to April 2009 - a year earlier than Labour - and a third round to April 2010.
Labour's planned third round would not take effect until April 2011.
National is yet to explain how it will pay for the promised larger cuts. (1)
I suspect a lot of people won't see it that way, and National's economic credibility will take a hammering as people join the (rather large and obvious) dots.
Borrowing money to fund tax cuts - whether or not it goes directly to the tax cuts, or to other projects (like, for example, infrastructure) - is still borrowing money to fund tax cuts.
The whole thing sounds like a Tui ad.
1 - "Nats to borrow for other spending - but not tax cuts," unattributed NZPA story, published in the New Zealand Herald, 2nd of August, 2008. (http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10524905)