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

 


Economy stationary as Govt fails to prepare NZ

John Key MP
National Party Finance Spokesman
24 March 2006

Economy stationary as Govt fails to prepare NZ

The surprisingly bad December growth figures out today show the Labour Government has failed to prepare the country for stormy economic weather, says National Finance spokesman John Key.

The December quarter Gross Domestic Product declined 0.1 per cent.

“The economy has slowed far more rapidly than expected and is now stationary. While we all knew the economy was slowing in the last half of 2005, this is worse than economists had expected.

“In fact, with Statistics NZ’s recalculation of the September quarter growth from 0.2 to just 0.1 per cent, the economy was stationary in the last half of last year.

“There’s every chance March quarter growth will also be negative – and if that happens the economy will be in a recession.

“Unfortunately, as the slowdown bites we can expect more job losses like those we have seen in the last few months.

“The Labour Government’s missed the perfect opportunity over the past six years to build a more competitive economy so the country was prepared.

“Finance Minister Michael Cullen has squandered the opportunity to strengthen the economy when times were good. New Zealand now faces stormy weather with only a raincoat, not adequate shelter.

“An example of Labour’s poor economic policy has been its spending binge in the core public sector, which has continued to grow while the economy has come to a standstill.

“Government administration and defence growth in the latest quarter was a whopping 3.7 per cent - the 16th consecutive quarter of growth in this area and an indication of just how much Labour’s piled on the bureaucracy at the country’s expense.

“Added to all this is the ugly current account deficit, which in the latest figures out yesterday is running at $13.7 billion - 8.9 per cent of GDP.

“New Zealanders will rue the fact that their Finance Minister has spent the last six years piling on bureaucracy and cost while Australia’s Treasurer Peter Costello has spent his time driving down tax rates, cutting red tape and building a more competitive economy.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news