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New Direction Needed To Get Economy Growing

Latest GDP figures showing zero growth for the March quarter are a serious setback for the government, ACT leader Richard Prebble says.

"The figures show that despite the best terms of trade for 30 years and the low dollar, the New Zealand economy is stalled," Mr Prebble said.

"The country is paying the price for higher income taxes, the repealing of the Employment Contracts Act and the crippling effect of the Resource Management Act on economic development.

"Rural New Zealand has enjoyed strong growth for the last year, so the figures confirm that Auckland is in the grip of a technical recession.

""The nil growth figures also mean the income gap between New Zealand and other developed countries is accelerating," Mr Prebble said.

"It means more talented New Zealanders and an increasing number of businesses will migrate.

"The government needs to face the reality that its policies of economic re-regulation and central control have failed. It should do a U-turn and adopt a prosperity-increasing tax cut and other progressive economic measures to get the country growing again."

ENDS




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