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

 

Land Swap: Setback For Ruataniwha Scheme As Forest & Bird Wins Appeal

The Royal Forest & Bird Protection Society has won an appeal against a proposed land swap by the Department of Conservation which would have allowed 22 hectares of Ruahine Forest Park be flooded as part of the Ruataniwha Water Storage Scheme that will provide irrigation for farmers. More>>

ALSO:

Up: Official July Crime Stats Released

Official crime statistics for July 2016 show that Police recorded 11,171 more victimisations than the same period last year, which equates to a 2.3 per cent increase. More than three quarters of this increase can be attributed to burglaries. More>>

ALSO:

Gordon Campbell: On The Judith Collins Charm Offensive

Suddenly, Judith Collins is everyone’s new best friend. It isn’t an election year, but the Corrections/Police Minister is treating 2016 as an opportunity for a political makeover… Feel that the Police don’t attend burglaries often enough, or assiduously enough? She’s the peoples’ champ on that one. More>>

PM's Press Conference: Crime And Diplomacy

The Prime Minister's press conference today was dominated by foreign affairs and an open letter from the PM to the Chinese community on crime. More>>

ACC: Govt Caught In Unethical Cluster Bomb Investments

The ACC Fund admitted that it had $1.4 million invested in cluster munitions and nuclear weapons manufacturer Lockheed Martin. Before responding to the Green Party’s request for information,however, ACC sold its Lockheed investment and updated its ethical investment policy. More>>

ALSO:

Local Governments To Decide: Easter Trading Bill Passes

The union representing working people in the retail industry is condemning the Government for whipping its MPs to pass the controversial Shop Trading Hours Amendment Bill. More>>

ALSO:

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news