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

 


New Zealand Deficit in the danger zone

David
PARKER
Spokesperson for Finance

19 December 2012 MEDIA STATEMENT
New Zealand Deficit in the danger zone

National’s failed promise to rebalance the economy has been shown in today’s current account figures, with the deficit totalling $9.9 billion in the year to September, says Labour’s Finance spokesperson David Parker.

“John Key wants Kiwis to believe he is a good economic manager. Yesterday a 33% increase in the cost of superannuation over the next four years was ignored by him, growth forecasts were further lowered, and unemployment was predicted to stay higher for longer.

"Today's $10 billion external deficit is further bad news. National has spent the last 4 years trying to ignore its promise to rebalance the economy, despite job losses in export industries and the danger to our economy. Economists call it the external or Current Account Deficit. I call it The New Zealand Deficit.

“Yesterday's forecasts show it’s set to get worse, hitting -$17 billion in 2017. The IMF say New Zealand’s external deficit will be second worst in the developed world after Greece this year and worst bar none next year.

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

“As a country we are spending more on our imports and interest than we are earning from our exports. We have to sell more assets or take on more debt to cover the costs. That means our companies either go overseas or become less competitive.

“The rules have changed since the global financial crisis. There is far less tolerance for large external deficits. The Government is ignoring this threat at our peril.

“Bill English says there is little the Government can do. He is wrong.

“Labour would increase our savings through universal KiwiSaver, reducing our need to borrow overseas. We would make sure those funds are invested in high-growth exporting companies through tax reform such as a capital gains tax and a research and development tax credit, helping us earn more from overseas and creating more export jobs.

“We would also require the Reserve Bank to consider the exchange rate and other important aspects of the economy, instead of the primacy of inflation trumping exports. That will help make our currency more competitive and stable, something exporters are crying out for.

“These solutions are needed now. A massive New Zealand Deficit will be a legacy of this National Government.”

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Journalism’s Future In The Era Of “Alternative Facts.”

Already, the White House has made it clear that the media are the new enemy that the new President’s supporters will be encouraged to unite against. (What else can they do now they don’t have Hillary Clinton to demonise any more?)

The fantastic phrase “alternative facts” coined by Trump spinmeister Kellyanne Conway captures the media strategy in a nutshell. More>>

 

PM's Press Conference: TPP, Trade And Minimum Wage

Prime Minister Bill English’s first official press conference of the year began with a warm welcome back from holidays. In relation to President Trump’s withdrawal from the TPP he expressed disappointment but hopes to negotiate a bilateral agreement with the US in the future. More>>

Employment: Minimum Wage To Increase To $15.75

The minimum wage will increase by 50 cents to $15.75 an hour on 1 April 2017... The starting-out and training hourly minimum wage rates will increase from $12.20 to $12.60 per hour, remaining at 80 per cent of the adult minimum wage.More>>

ALSO:

Housing: Sit-In Occupation To Stop Niki’s Eviction

The Tāmaki Redevelopment Company hopes to issue a Possession Order for 14 Taniwha Street, Glen Innes. This will give them the ability to forcibly evict Ioela ‘Niki’ Rauti who has lived at 14 Taniwha Street for 21 years... More>>

ALSO:

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news