Labour’s childcare package ‘band-aid economics’

National leader Christopher Luxon has called the government’s new childcare policy “band-aid economics” that doesn’t tackle the underlying causes of inflation.

The comments came after Prime Minister Jacinda Ardern announced a $190 million package that will provide support payments for lower and middle-income families.

The payments are aimed at helping low and middle-income families afford things like before and after-school care.

Luxon said his party was fine with the package but wanted to see the government do more about inflation.

“The package is fine as it is, but frankly, it’s band-aid economics, and it really isn’t an inflation fight plan that gets to the underlying causes of inflation; which is causing so much hurt and suffering for these families,” he said.

“I found it quite interesting that Government is prepared to inflation adjust income thresholds but won’t inflation adjust tax thresholds which every developed country across the world has been doing.”

He’s calling for the government to develop an economic plan that tackles inflation at the roots.

He wants to see things like more control passed onto businesses, opening up immigration bottlenecks and cutting back on spending, which Luxon says adds to inflation.

Luxon responded to Labour’s criticism of National’s tax policy by saying his first goal was to control inflation.

He wants to see tax thresholds adjusted to get inflation under control and highlighted similar policies that have been successful overseas.

“The vast majority of what we’ve proposed on our tax policy – first and foremost is to get adjusted tax threshold in place.

“If it’s good enough for France and Germany and span and other western European countries, It’s good enough for New Zealand to do it,” Luxon said.

He believes the government has done a very similar thing, adjusted income threshold, and it’s the “same principle.”