(National Party media release)

Labour’s price hike at the fuel pumps this weekend will cause problems beyond the 29-cent spike, National’s Finance spokesperson Nicola Willis says.

“Not only will Kiwis be hit by the $15 extra to fill up the tank of an average car, the price hikes will likely hit sausage rolls, bread, butter – and other basic food items that Kiwi families are already struggling to pay.

“Labour is ripping off this band-aid policy in one painful swoop. The Government has had months to unwind their knee-jerk policy solution, but it all comes crashing down tomorrow.

“The damaging follow-on effects of the price hike will likely be felt across the wider economy and hit household budgets hard.

“Worse, the inflationary impact will come at time when the recession is hitting home. We can expect this pain at the pump to damage inflationary expectations and keep interest rates high.

“There will be a slump from the pump and New Zealanders can look forward to a Black Saturday thanks to Labour’s inept economic management.

“National would address the underlying drivers of inflation by restoring discipline to Government spending; helping Kiwis cope with living costs by delivering income tax reductions of at least $960 per year for an average income earner.

“National will help drive New Zealand out of recession by backing businesses to grow.”