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MED BIM the sandwich, where’s the meat?

Thursday, 2 February 2012, 3:44 pm
Press Release: New Zealand Labour Party

David Cunliffe
Economic Development Spokesperson

2 February 2012

MED BIM the sandwich, where’s the meat?

The Ministry of Economic Development's Briefing to Incoming Ministers (BIM) released today highlights the huge vacuum that is National's economic growth agenda, Labour’s Economic Development spokesperson David Cunliffe says.

“The Ministry says ‘deeper and further action’ is needed to drive growth and exports and calls for a ‘refreshed and more ambitious’ strategy.

"In effect MED is saying retrenchment is not enough. Labour agrees,” David Cunliffe said.

“Quoting leading academics the Ministry argues that it is not sufficient, because of New Zealand’s small size and isolation, to simply rely on firms to get it right and to lower costs of the ‘business environment’ if we are to achieve higher rates of growth.

“Finland, Ireland, Singapore and Israel are noted as small smart countries that took a more pro-active approach. This accords closely with Labour's view that New Zealand needs a clear and integrated strategy for lifting productivity and growth. Clearly the Government hasn’t been listening - to anyone.”

David Cunliffe said about 80 per cent ($126million) of the department’s grant budget is allocated to movies and major events. “That proves the Government cannot see past entertainment events as our economic salvation.

“Combined with a cycle-way that never got built, it proves just how asleep at the wheel Steven Joyce and his do-nothing colleagues have become,” David Cunliffe said.

"Likewise MED's list of actions are startling for their lack of substance. Token support for innovation and food products, toys for the Government’s boys in the primary growth partnership, and the capital markets task force that Labour set up anyway, is a very lightweight agenda.

"National's passion for mining National Parks and drilling oil off our best beaches is not a real plan either.

“The sad truth is that MED is now marginalised and so is the economic development agenda. The proof of that lies in the Treasury BIM that makes clear the real agenda is one of tax and spending cuts dressed up as assisting the ‘business environment’.

"Hard working Kiwi business people don't need more cuts. They need customers with money to spend and a plan for a better future. National has no plan for this, Labour does,” David Cunliffe said.

ENDS

 
 
 
 
 
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