20 Apr 2010

PM criticises ACT's spending cap policy

2:41 pm on 20 April 2010

The Prime Minister has criticised an ACT Party proposal to legislate to keep Government spending under control.

Parliament will consider a Government expenditure cap later this year, when the Taxpayers' Rights Bill is debated as part of ACT's support deal with the Government.

ACT leader Rodney Hide says it's been agreed that the legislation should have its first reading by the end of this year.

Mr Hide says restricting spending would create more wealth and strengthen the economy.

However, Prime Minister John Key says he personally opposes legislating for a cap on public spending.

Mr Key says the Government is already committed to controlling its spending, and the Budget next month will have only an extra $1.1 billion set aside for additional spending.