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

 

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
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Post Cab Presser: Inquiries And Consciences

    This afternoon the Prime Minister John Key announced that his cabinet had drafted terms of reference for the Havelock North water contamination inquiry... In response to questions on the Shop Trading Hours Amendment Bill, the Prime Minister said he didn't think allowing National MPs a conscience vote was warranted. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news