Axe Taskforce 2025 - Goff

Phil Goff has called for the 2025 Taskforce to be axed. Photo / Mark Mitchell

The 2025 Taskforce set up to find ways to catch up with Australia's economic growth should be scrapped, Labour Leader Phil Goff says.

The taskforce, chaired by former National Party leader Don Brash, released its first report this week urging the Government to cut taxes to between 20 per cent and 25 per cent, slash spending by $9 billion and sell state assets.

Prime Minister John Key said its core recommendations were too radical to implement.

Mr Goff said today it had a budget of $447,000 over three years and had so far cost $150,000.

"The taskforce's first report was a complete and utter waste of money," he said.

"Why give your mates $447,000 to cook up something you say you're not going to do ... dump this soapbox for ACT and Dr Brash and save the taxpayer the unspent $330,000."

The taskforce was set up under the Act Party's support agreement with the Government, and ACT has been the only political party to support its recommendations.

It will exist for three years, issuing further reports and monitoring the Government's progress.

Mr Goff's call for it to be axed came in a speech he made in Napier about New Zealand's economic situation.

He said there were signs the worst of the recession was over but the Government was doing little to ensure New Zealand recovered strongly.

"Unemployment has more than doubled to over 150,000 but there have been little or no initiatives to boost education and skill training so our workforce is ready to take advantage of the recovery," he said.

"Investment in research and development has been cut, not increased.

"The need for a more effective monetary policy to promote an export-led recovery has been ignored."

Mr Goff said the cost of living had gone up and there had been a sharp rise in the number of families paying more than $300 a week in rent.

"Every week, the average family pays more than a third of their total income on rent or a mortgage," he said,

"What rent rises mean is that half of all households say they don't have enough to meet everyday needs."

- NZPA