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

 


Asset sales will leave Govt and economy worse off

21 May 2012

Asset sales will leave Govt and economy worse off

The Green Party today released the detailed findings of a new report that shows the Government and the economy will be permanently worse off if asset sales go ahead.

BERL’s chief economist, Dr Ganesh Nana, was commissioned by the Green Party to investigate the long term impacts of the Government’s signature asset sales programme.

“BERL have found that a programme of asset sales leaves the Government accounts permanently worse off in terms of Government debt, debt ratio, net worth, and total assets,” said Green Party Co-leader Dr Russel Norman.

“Not only is the news bad for the Government’s books, the effect of asset sales on the wider economy is even worse.

“BERL have found that the flow of profits to foreign buyers will result in ‘a permanent deterioration in the external deficit and the level of external debt’.

“Even Bill English accepts that our high levels of indebtedness to overseas lenders is our number one economic vulnerability.

“His programme of asset sales would make that worse.”

Dr Ganesh Nana’s report concluded that, “It would be unwise from an economic perspective to embark on a policy that risked increasing external payment obligations.”

“The National Government has dug itself into a hole with poor economic management and poor choices; asset sales would only make it worse,” said Dr Norman.

“National has borrowed around $2 billion to finance their 2010 tax cuts, has increased ETS subsidies to polluters, and is spending $14 billion on uneconomic motorways.

“Now we are all going to have to pay for National’s poor economic choices with higher charges on prescription medicines, cuts to the number of school teachers, and cuts to affordable housing.

“National’s record debt can be brought under control with smart green economic choices promoted by the Green Party, without punishing families on tight budgets.”

Link to BERL Report on Asset Sales: http://www.greens.org.nz/misc-documents/berl-report-asset-sales

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

AMA: Scoop's 'Invisible Paywall'

Operation Chrysalis: The Final Countdown - Thanks & There's Still Time To Pledge

Phew! We are now counting down the hours to the end of this crowd-funding campaign at 11pm on Sunday. Thankyou to all those Scoop readers and supporters who have pledged already. You have been awesome. But this is not over yet. More>>

 
 

PARLIAMENT TODAY:

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:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news