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 Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience.

“Labour has many new and highly capable MPs who will have the opportunity to prove their ability. At the same time our senior hands will be on deck to take the fight to the National-led Government and support our upcoming stars,” Andrew Little says.

“I am pleased to announce Annette King will be my deputy for the coming year. In recent weeks she has shown how crucial her wisdom and strength is to Labour. More>>

 

Parliament Today:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:


Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news