30 Aug 2012

Banks not worried at Govt ditching spending cap

9:00 pm on 30 August 2012

ACT Party leader John Banks is not concerned the Government has dropped the spending cap proposal from its Public Finance Amendment Bill.

Introducing legislation imposing a cap on government spending is part of ACT's confidence and supply agreement with National.

Mr Banks says the Government simply does not have enough support to get the spending cap through in the bill and that is the reason for it being dropped.

Crucially, United Future leader Peter Dunne refused to vote for the whole bill - which would make the public finances more transparent - if it included the spending cap.

However, Mr Banks says the spending cap will be introduced later in a stand-alone piece of legislation.

Mr Dunne has not ruled out supporting that legislation going to select committee for consideration if he is satisfied with the wording of the bill.