Labour defends 'misleading' GST pamphlets

Darryn Hughes (centre) protesting earlier this year. Photo / Supplied.

Labour is defending information it published in pamphlets being distributed nation-wide which compare household costs with and without a 15 per cent GST.

The taxpayer-funded pamphlets, of which there are hundreds of thousands, zone in on the impacts the Government's policies are having on public services and the income and spending power of New Zealanders.

The pamphlets include a basic statistics column citing an example of a monthly power bill figure of $189.34, saying "plus National's 15 per cent GST" of $28.40 it will increase the bill to $217.74.

National Party and Tukituki electorate MP Craig Foss this morning said the comparison as "misleading" and an apology and retraction was needed from Labour.

With GST having already having been introduced by Labour - and increased to 12.5 per cent - years before National came to power, trying to pass the increase off as 15 per cent when it was in fact going up 2.5 per cent from October 1 was not on, he said.

"They totally misrepresent the fact that GST is switching from 12.5 to 15 (per cent)...the fact that the taxpayer is funding these pamphlets makes it worse and I think the Labour Party owes New Zealand an apology and should issue a correction", he told NZPA.

Labour Party chief whip Darren Hughes hit back this morning, saying National was trying to avert attention from the looming GST increase.

"Labour makes no apologies for highlighting an increase in basic goods and services like power and food at a time when families are struggling," he said.

Mr Hughes said the information pointed out the fact that New Zealand had one of the highest consumption taxes in the world.

National was "hitting families who cannot afford it with a substantial GST increase and Labour is simply pointing that out".

Mr Foss said the pamphlets ignored the fact that electricity prices went up 72 per cent during Labour's term in government. "So it's very misleading and in any other forum they would probably be facing some kind of complaint."

- NZPA