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

 


Govt’s books deteriorate for no apparent gain

20 February 2012

Govt’s books deteriorate for no apparent gain

The National Government’s economic mismanagement has led to a widening budget deficit with no apparent gain in sight, the Green Party said today.

Treasury numbers out today show that the overall operating deficit for the six months to the end of December was $9.4 billion, 38 percent worse than forecast before the election. Core Crown tax revenue was $400 million lower than forecast and Treasury advise corporate tax revenue was expected to deteriorate further over the year.

“The National Government’s centrepiece tax shift isn’t delivering the kind of resilient, export-focused economy they’d promised; it’s just leading to more Government debt,” said Green Party Co-leader Dr Russel Norman.

“John Key’s way of addressing self-inflicted falling tax revenues has been to increase Government borrowing, cut core Government services, and sell state assets.

“This is not a strategic way to run a budget or an economy. It’s reactive economic management and our economy will be structurally no better off when the global recession ends.

“The Government’s vaunted tax switch has simply left to a big hole in their books for no apparent gain.”

Inland Revenue’s Briefing to the Incoming Minister has highlighted that current Government policy was largely responsible for a dramatic 4.1 percent decline in tax revenues as a percentage of GDP. This compares to a 1.5 percent decline throughout the OECD over the same period. Inland Revenue also questioned whether decreasing the corporate tax rate had attracted new investment.

“Inland Revenue have fairly questioned the Government’s race to lower corporate tax rates when there is little evidence to show that this tax cut has been matched with increased foreign investment,” Dr Norman said.

“The same has happened with personal tax cuts which went mainly to those on higher incomes. Personal tax cuts did little to either stimulate the economy when it needed it or lead to increased levels of investment into productive enterprise.

“A capital gains tax and a levy on the commercial use of water are smarter alternatives to government service cuts and asset sales.

“A tax on capital gains (excluding the family home) and a water levy would move the economy onto a more productive footing while stemming widening Government deficits.”

Financial Statements of the Government of New Zealand for the Six Months Ended 31 December 2011: http://www.treasury.govt.nz/government/financialstatements/monthend/

IRD Briefing to the Incoming Minister: http://www.ird.govt.nz/aboutir/reports/briefing/briefing-2011

The Green Party's alternative plan for our economy: http://www.greens.org.nz/greenjobs

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news