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Cooling economy heats unemployment

Cooling economy heats unemployment

Today’s increase in unemployment is proof that the economic tail wind the Government has enjoyed for the last three years is slowing down, says National’s Finance spokesman, Don Brash.

“This Government has enjoyed the benefit of high commodity prices, good growing weather down on the farm, and a weak exchange rate, but it knew it would not last. The Finance Minister has even indicated this himself, with the concerns he expressed this week about the rising exchange rate.

“His concerns are a bit rich considering it is his Government that is forcing measures such as new OSH and Local Government legislation and Kyoto ratification onto the business community.

“What Dr Cullen should be doing is directing his energy towards those things he can do something about, like the tax burden and the regulatory environment.

“The Government is trying to put a positive spin on today’s HLFS figures by putting the result down to “brain stay”. The reality is, people will only continue to stay in, or be attracted back to, New Zealand if the economy is vibrant, with strong employment prospects,” said Dr Brash.

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