“Winston Peters’ admission that he won’t be opting-out of the winter energy payment scheme shows what is wrong with universal welfare”, says ACT Leader David Seymour.
ACT has calculated that approximately $73 million will be spent on winter energy payments for wealthy pensioners like Mr Peters who earns over $330,000 a year.
“The Government has an aversion to means-testing.
“So instead of targeting handouts at disadvantaged New Zealanders, it is using universal welfare schemes to give millions of dollars to those that don’t need it.
“This approach to spending makes it increasingly likely that the Government will need to raise new taxes out of the Tax Working Group.
“There is a case to be made for the government to assist the genuinely needy.
“But there is no reason whatsoever for the Government to provide welfare for wealthy people like Mr Peters.
“Eventually New Zealanders are going to have to pay the piper in the form of higher taxes”, says Mr Seymour.