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

 


National has not rebalanced the economy

David Parker
Finance Spokesperson

16 February 2012

National has not rebalanced the economy

The Government’s Budget Policy Statement confirms that its ‘strategy’ is to sell off New Zealand’s assets, does not address the fundamental problems with our economy, Labour’s Finance spokesperson David Parker says.

“The Government’s own advisors say that unless it makes structural changes to tax, savings and investment policies, New Zealand’s current account deficit will be $17 billion by 2016, funded by borrowing or asset sales. Our net liabilities to the world – the main reasons for New Zealand’s credit downgrades last year – get worse.

“Blaming others for the problems they have responsibility to fix becomes more difficult for second term Governments – they have already had three years.

“Three years ago National inherited very low Government debt from the outgoing Labour Government, which had reduced it from 37 per cent of GDP to 17 per cent - amongst the lowest in the developed world,” David Parker said.

“Finance Minister Bill English himself admitted at the time there was some fat: ‘In New Zealand we have room to respond. This is the rainy day that Government has been saving up for’.

“Since National came to office, however, Government debt has climbed – to $72 billion or 36 per cent of GDP – and is projected to grow by another $16 billion over the next two years, to $88 billion. No wonder Kiwis are nervous about the economy,” David Parker said.

“Reducing the Government deficit is important, but it is only part of the equation. New Zealand needs to export more than we import and pay in interest to overseas lenders. Every year we don’t pay our way in the world, we have a current account deficit.

“Every year the current account deficit has to be funded by the New Zealand economy borrowing offshore and selling New Zealand-owned land and business to overseas investors. National has no answer to this structural problem.

“John Key’s constant over-egging of National’s economic credentials, and his repeated slogans of a brighter future followed by repeated downgrades, are wearing thin. By 2016 National would have been in power for eight years, yet New Zealand will still be getting poorer. That is not success. Nor is it the bright future John Key promised

“Labour is determined to confront the fundamental problems with our economy that National will not address.

“Important reforms are needed. Tax reform, changes to monetary policy and savings and investment should be part of a plan to grow our exports and create a fairer and wealthier New Zealand.

“A more prosperous future is possible for New Zealand, if these issues are addressed,” David Parker said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Northland By-Election

Supposedly, Winston Peters’ victory in Northland has exposed the simmering dissatisfaction with the government that exists out in the provinces. Yet it remains to be seen whether this defeat will have much significance – and not simply because if and when Labour resumes business as usual in the Northland seat at the next election, Peters’ hold on it could simply evaporate.

On Saturday, National’s electorate vote declined by 7,000 votes, as the 9,000 majority it won last September turned into a 4,000 vote deficit – mainly because Labour supporters followed the nod and wink given by Labour leader Andrew Little, and voted tactically for Peters. In the process, Labour’s vote went down from nearly 9,000 votes six months ago, to only 1,315 on Saturday. More>>

 

PARLIAMENT TODAY:

Climate: Ministers Exclude Emissions From ‘Environment Reporting'

The National Party Government has today revealed that the national environmental report topics for this year will, incredibly, exclude New Zealand’s greenhouse gas emissions, the Green Party said today. More>>

ALSO:

No Retrial: Freedom At Last For Teina Pora

The Māori Party is relieved that the Privy Council has cleared the final legal hurdle for Teina Pora who was wrongfully convicted of murder and sent to prison for 22 years. More>>

ALSO:

Germanwings Crash: Privacy Act Supports Aviation Safeguards In New Zealand

Reports that German privacy laws may have contributed to the Germanwings air crash have prompted New Zealand’s Privacy Commissioner to reassure the public that the Privacy Act is no impediment to medical practitioners notifying appropriate authorities to a pilot’s health concerns. More>>

ALSO:

Treaty: Taranaki Iwi Ngāruahine Settles Treaty Claims For $67.5mln

The settlement includes a $13.5 million payment the government made in June 2013, as well as land in the Taranaki region. The settlement also includes four culturally significant sites, the Waipakari Reserve, Te Kohinga Reserve, Te Ngutu o te Manu and Te Poho o Taranaki. More>>

ALSO:

Gordon Campbell: On A Funeral In Asia, The Northland By-Election, And News Priorities

Supposedly, New Zealand’s destiny lies in Asia, and that was one of Foreign Minister Murray McCully’s rationales for his bungled reforms at MFAT. OK. So, if that’s the case why didn’t Prime Minister John Key attend the state funeral on Sunday of Singapore’s founding leader Lee Kuan Yew? More>>

ALSO:

Werewolf Satire: Not Flag-Waving; Flag-Drowning

The panel choosing the flag options has no visual artists at all. Now, I’ve kerned the odd ligature in my time and I know my recto from my French curve so I thought I’d offer a few suggestions before they get past their depth. More>>

ALSO:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news