Parliament

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

 

National gives us the double dip blues for Christmas

23 December 2010

Media Statement

National gives us the double dip blues for Christmas

New Zealand’s economic performance is becoming bleaker and bleaker under National’s mismanagement, says Labour’s Finance spokesperson David Cunliffe.

David Cunliffe, commenting on the release today of GDP figures for the September quarter, said the 0.2 percent decline, following an increase of just 0.1 percent in the previous quarter, showed that things are getting worse not better.

"Of huge concern is the continuing freefall of Kiwi manufacturing, down another 1.7% after 4.3% the previous quarter. Fishing, forestry and mining are down 5.5% and construction 2.5%. This is a broad-based slowdown across productive sectors and would be far worse if we did not have record prices for dairy products to cushion it.


"These statistics prove the slowdown trend is not just part of ‘necessary rebalancing’, as National pretends. Cutting capital formation (investment) in transport by 8.3% in a quarter, by 7.4% in residential building and 6.4% in plant and machinery will leave the economy less capable of rebounding in future,” David Cunliffe said.


“National has had two years at the economic tiller, and still has no economic plan to promote growth and jobs,” David Cunliffe said. "A double-dip recession is now a real possibility, although this may be temporarily offset by Christmas period sales in the fourth quarter. These statistics reaffirm the bad news in last week's HYEFU showing that our economy is heading backwards, and as a result the government's accounts are collapsing.


“National’s mismanagement of the economy has been characterised by three failed ‘initiatives’,” David Cunliffe said.

“Its $23 billion of tax cuts have done nothing to revitalise the economy, but has put more money in the pockets of National’s rich mates while making life tougher for struggling low and middle income earners; its cycleway has created just a handful of jobs; and its ideological tampering with labour laws is knocking the stuffing out of hard-working Kiwis.

“While National fiddles, the increase in unemployment since it took office is costing the country about three quarters of a billion dollars in foregone tax revenue and the direct costs of the unemployment benefit,” David Cunliffe said. “When other assistance is thrown in, the true cost is much higher.

“Meanwhile, our closest trading partners are leaving New Zealand well behind in terms of growth. National can no longer hide behind the global financial crisis back in 2007-08 for its economic mismanagement,” David Cunliffe said. “If our closest neighbours and trading partners can do it, why can’t National do it here?

“There is no excuse. National came in to government with no idea other than to give tax cuts to the wealthy. It has blindly pursued that path, whatever its folly and whatever continuing damage it is causing to the large majority of New Zealanders.

“National’s Christmas message is simple: ‘Haves’ a happy Christmas and ‘have nots’ --- tough luck.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why France Could Become Our Closest Ally In Europe

As PM Jacinda Ardern returns from a triumphant tour to Britain and the capitals of Europe, her officials have probably begun to assess what the more substantive gains from the trip might have been. Most of the chatter has been about potential trade deals – so lets just assume for the moment that bilateral trade deals between big and small countries are a good thing, despite the perils they pose to the smaller party. Currently, Britain is so involved with its Brexit nightmare that there seems little prospect of any substantive early progress on an FTA with Britain. In any case, New Zealand should be wary of being the first cab off that particular rank. ... More>>

 

HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>

ALSO:

Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>

ALSO:

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages