Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Investment Gap Widening, Says Prebble

ACT leader Richard Prebble today told the government they must make the growing investment gap the number one priority in the Budget.

“They may want to spend and try to cultivate fair weather friends, but the government needs to acknowledge that investment in New Zealand has stalled.

There has been a flight of capital and skilled labour from the country,” Mr Prebble said.

He said that overall, investment in New Zealand had been rising through the 1990s to a peak in 1997 of $20.236 billion.

Since then it has fallen. In the mid-1990s New Zealand had a positive net migration rate.

However, since 1997, New Zealand has been losing more people than it has gained. In April 2000, some 217 New Zealanders left each day permanently.

“This net migration and the outflow of investment is creating an investment gap. ACT believes total new investment this year will fall below $17 billion. $10 billion investment is needed for the economy just to stay still,” Mr Prebble said.

“A report I have received says that to grow the economy at 4% with outward migration would require $27 billion of investment. So the investment gap needed to finance Dr Cullen’s predicted 4% growth is a massive $10 billion. Lack of investment will choke off economic growth.”

“In the budget there is no recognition that there is even a problem. The problem is compounded because last year New Zealand's net domestic savings were just $2,104 million, the lowest for the 1990s. Michael Cullen's ideas to use the tax system to save for us will only distort the country's investment.”

Mr Prebble said the budget should address how to attract investment in a global economy. Investors were attracted to New Zealand by the four pillars of the economy. The Fiscal Responsibility Act, the independent Reserve Bank, the Employment Contracts Act, and the open economy.

“Dr Cullen both before the election and as recently as last week has claimed that the pillars of the economy are secure. Investors do not agree. The spending increases in this budget are fiscally irresponsible. The Reserve Bank is being reviewed. The Employment Contracts Act is being repealed. The Sealord decision, the review of the Reserve Bank and the repeal of the Zero Tariff Act are not the actions of an open economy,” Mr Prebble said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>


Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>


No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>


Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>


Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>


Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>





InfoPages News Channels