Politics

Government stimulus package

07:39 am on 27 November 2008

Finance Minister Bill English is defending the scale of a stimulus package being prepared by the new Government.

Treasury predicts that tax cuts and the bringing forward of infrastructure spending will add $7 billion to the New Zealand economy over the next two years.

Labour calls it modest, compared to what other countries are doing.

Mr English told Morning Report the stimulus is significant - but cautioned that no Government has the resources to offset the effects of recession.