Scott says

The stark reality that inflation is now at a 30 year high will come as a serious wake-up call to most people. High inflation is remembered by many of us who lived through the 1980s as an economic curse. It’s a thief living in people’s pockets. It reduces savings and incomes, it hurts those on low and medium incomes most, it means the cost of living goes up day by day and that wages can’t keep up with it. Sadly, the remedy brings only more financial pain for those who can least afford it.

The remedy is that the Reserve Bank puts up interest rates in an attempt to slow demand and that means people with mortgages end up paying a lot more interest on their loans. Higher interest rates mean less disposable income and that leads to a slowing down of spending which means a slower economy. Petrol prices, grocery prices and the day to day cost of living are all going up at rates not seen for more than 30 years.

Now, some of the factors contributing to inflationary spikes are out of our control, but it certainly hasn’t helped that the Government has been loose with its spending. When governments talk about ‘free’ this and ‘free’ that, what they really mean is taxpayer-funded. We’ve been asked to foot the bill for pet projects, which will have little to no benefit to everyday New Zealanders. It’s time that they showed some restraint and made much better decisions about how hardearned taxpayer dollars are invested.

It’s going to take the sensible and practical approach of a National-led government to sort out the mess Labour has created. As we look beyond Omicron and Covid, more and more New Zealanders are asking questions about Labour’s failure to deliver on the big issues facing us as a nation.

It’s a question they are asking every time they fill their petrol tanks or buy groceries. Sadly, inflation is likely to go even higher this year.

Please never hesitate to be in touch. If you have any issue you wish to discuss with me, don’t hesitate to call 0800 550 330 or email mpcoromandel@ parliament.govt.nz