PM's economic goal demands 6 percent growth

Tuesday 13th Feb 2001 Rodney Hide Media Release -- Economy

ACT Finance spokesman Rodney Hide said in Parliament today it was great news that the Prime Minister had set the country a clear economic goal. The bad news is that she has not set out a policy path to achieve it.

“Helen Clark today told Parliament that ‘we can look ahead 10 years’ and ‘we can be in the top half of the OECD, not falling to the bottom’.

“That’s a great goal, and a worthy one. On the OECD economic ladder, we are now country number 21 out of 29, and falling. Last year, Spain that is just below us, grew at 4.3 percent, with Korea growing 8.3 percent. We grew at just 1.3 percent.

“On last year’s growth rate, we would fall over the next 10 years to place number 23, below Spain, Portugal and Korea. We would still be above Hungary, Poland and the Czech Republic. “The Government’s own projections of 2.9 percent would still see us falling below Spain.

“To get in the top half of the OECD economic ladder would require that: (a) everyone else stands still while New Zealand puddles along, (b) all the African states join the OECD, or (c) New Zealand grows at 6 percent real each year for the next 10 years.

“It can be done. But the prescription is lower tax, a massive cut to red tape, a commitment to private property and to binding contracts.

“This Government’s prescription of state-run Banks, a re-regulated labour market, tax increases and more regulations in opposition to every other OECD country’s direction can only push New Zealand further down the economic ladder,” Rodney Hide said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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