[Greens-Media] Tax cuts add to interest rate rise -Greens

[Bennett, Ebony (Sen B. Brown)]

Wednesday, 2 August 2006

Tax cuts add to interest rate rise -Greens

The government's recent tax cuts added to inflationary pressure and
consequently to higher interest rates, Greens Leader Bob Brown said
today.

"The Greens were the only party who voted against the most recent tax
cuts, which increased pressure on inflation and, in turn, the pressure
on the Reserve Bank to raise interest rates today," said Senator Brown.

"The tax cuts overwhelmingly favoured the wealthy over those on low
incomes and now low income families will be hit hardest by the double
blow of higher interest rates and skyrocketing petrol prices." 
 
"The last election was fought on a phony issue. The seventh consecutive
interest rate rise shows that the government doesn't control interest
rates and has exposed John Howard's election promise to keep interest
rates low as hollow and misleading."

"The fact is that in deciding to increase interest rates the Reserve
Bank Board were far more worried about the impact of John Howard's tax
cuts than they were with the price of bananas," said Senator Brown.

"The money from the tax cuts should have been invested in social
infrastructure like housing, public transport, schools and hospitals,"
said Senator Brown.

Further information: Ebony Bennett 0409 164 603


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Ebony Bennett
Media Adviser
Office of Greens Senator Bob Brown
Mobile: 0409 164 603
Ph: (02) 6277 3170
Fax: (02) 6277 3185
ebony.bennett at aph.gov.au