Once again the Herald shows us the ignorant nature of it’s headline makers:
That is NOT what Key said at all. What he said was:
““Like everyone else, we’re frustrated by higher petrol prices,” Mr Key said. “It’s just a fact we have to live with at the moment.””
This, of course, is completely true. The government can do nothing about the price of crude oil. It is also true that the tax on petrol is earmarked for roads and is not easy to remove from petrol without pushing up taxes elsewhere. None of this indicates that Key is indifferent to price rises and their implications for the man in the street, as the headline implies.
GST could be removed from petrol. But only if accompanied by a rapid reduction in government spending to match the fall in revenue. This would be a worthy thing to champion, as it is a much cleaner exception than GST off fruit and vegetables. But Mr Goff prefers to make inane comments about inflation and the GST rise.
For the record, a rise in GST does not cause inflation (pressure on general prices caused by money oversupply), GST causes a one-off increase only. This will be evidenced by the fact that the rate of price rises will rapidly settle over the next few months as the one-off increase works its way through.
At least the Herald had the grace to note that Mr Goff has evidenced no intention to reverse the GST rise or remove GST from petrol, so his mutterings are contentless, as usual.
The article is reasonable journalism and relatively even-handed. It is a pity that it is spoiled by a headline that is blatantly slanted.