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

 


A tale of two deficits

David
PARKER
Spokesperson for Finance

18 December 2012 MEDIA STATEMENT
A tale of two deficits

National’s economic plan is plainly failing, with its own forecasts showing an external deficit of over -$10 billion for each year for four years, rising to -$17 billion by 2017 says Labour’s Finance spokesperson David Parker.

“National wants us to focus on the government deficit, and to ignore the external deficit.

“Why? Because they want to forget their promise to rebalance the economy. But we must not ignore our $10 billion a year (and rising) deficit. Economists call it the Current Account Deficit. I call it The New Zealand Deficit.

“It is worst in the developed world after Greece this year. It’s predicted by the IMF to be the worst in the developed world next year. Treasury says it will be negative $17 billion in 2017.

“Our drop in export competitiveness is why we are losing jobs. We are not exporting enough to pay for our imports and interest. Every year The New Zealand Deficit results in more debt saddling Kiwis and the sale of our assets to foreigners.

“The rules have changed since the global financial crisis and large external deficits are less acceptable now.

“A widening external deficit combined with a stagnant economy and high unemployment is a recipe for failure

“The credit agencies have said they are increasingly concerned about The New Zealand Deficit

“Above -5% of GDP is ‘the danger zone’, the point at which international creditors get really worried.

“Treasury is forecasting the $17 billion external deficit in 2017 will equal -6.5% of GDP, and this is at the low end of the forecast range

“Infometrics are predicting a deficit of -6.6% of GDP in 2014 and the NZIER are forecasting our external deficit to reach –9.9% of GDP in 2017

“Bill English says there is not much we can do about it.

“This is simply irresponsible. No wonder unemployment is predicted to stay higher for longer.

“National haven’t delivered on their promise to rebalance the economy

“There is a lot that can be done, National needs to get stuck in and take a hands-on approach to the economy - pull the levers only a government can pull: change monetary policy, introduce pro-growth reforms including universal savings and a CGT to rebalance the economy.

“National’s biggest plan for this three years was to sell our state assets, which is floundering. This was never going to increase jobs or exports, and shows how bereft the government is of ideas to improve our economy.

“What growth there is is largely the result of the Canterbury earthquake as insurance proceeds are spent on the rebuild. National cannot claim credit for that.”

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Andrew Little’s Debut, Mockingjay, And Drunk Texting

John Key’s credibility has taken a hammering this week – at least among the 50% of the electorate who have always had doubts about him on that score.

The other substantial story of the week has been about Andrew Little’s debut as Labour leader, which has received top marks, especially among the 25% of the electorate still voting Labour. According to some reports, the Labour caucus has been ‘in seventh heaven’ about Little’s success this week in taking it to the government in the House. More>>

ALSO:

 
 

Parliament Today:

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel. More>>

ALSO:

Glenn Inquiry: Report Offers Solutions To Family Violence

The People’s Blueprint unveiled today by Sir Owen Glenn’s independent inquiry into child abuse and domestic violence outlines a new, more cohesive and effective system for reducing New Zealand’s alarmingly high family violence rates. More>>

ALSO:

Environment Commissioner: Changing Climate And Rising Seas - Understanding The Science

A rising sea will be with us for a long time to come – one way or another we will have to adapt. But how high and how fast the water rises will be influenced by the speed at which the world – including New Zealand – reduces greenhouse gas emissions over the coming decades. More>>

ALSO:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news