Parliament

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

 

Need to rethink unregulated foreign investment

Need to rethink unregulated foreign investment

Green Media Release 20th December 2007

Today’s figures showing a widening of the current account deficit to 8.3% of GDP shows the long term damage done to the New Zealand economy by two decades of reckless liberalising of foreign investment rules by successive Labour and National governments says the Green Party. Surely a $14.2 billion current account deficit is enough to force a rethink.

“Both Labour and National have succumbed the new right ideology of placing no restrictions on foreign investment in New Zealand, and the result is a huge current account deficit” says Dr. Russel Norman, Green Party Co-leader.

“Perhaps just once they should read what the Statistics New Zealand says about the impact of their ideological blinkers:

The increased deficit was due to a larger deficit on investment income…The larger investment income deficit was mainly due to an increase in profits earned by foreign-owned New Zealand companies, and higher interest payments made on New Zealand's rising levels of overseas debt.

“Labour and National facilitated the sale of most of our large corporations and banks to overseas owners and now the dividends go to those owners, draining resources from our economy.

“We are borrowing money from overseas to fund the housing market bubble, and now we have to service that debt. Net overseas debt increased 11.7% over the 12 months to September 2007, but the economy overall only grew by 2.2% (12 months to June 2007- latest figures). We are growing our debt at a faster rate than we are growing our ability to service the debt.

“The current Labour-led administration loosened the rules on foreign investment in New Zealand, exacerbating the problem.

“We need measures to produce long-term stability in the housing market and we need to apply a public interest test to foreign takeovers of New Zealand companies.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“The BPS and the Treasury’s Half Year Economic and Fiscal Update show we can deliver our promises while running sustainable surpluses and paying down debt...

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

 

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

Principals' Federation: End Of National Standards

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended. More>>

ALSO:

Public Good: People’s Report On Public Broadcasting And Media Presented

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>

ALSO:

RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>

ALSO:

'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages