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 The Govt’s Token Plans For Cyber-Security

Basically, the world is divided into two types of people: those who think the Panama Papers illustrate the bad shit that some people do, and those who think the Panama Papers illustrate what needs to be done to make sure no-one else discovers the shit – good or bad – that they’re doing. More>>

ALSO:

Gordon Campbell: On Pharmac’s Grudging Concession To Reality

Is this any way to run a health system… whereby terminally ill patients are forced into public demonstrations before the government (and its funding agency Pharmac) will grudgingly provide the money for life-saving treatments freely available and publically funded in Australia for the best part of a year? More>>

ALSO:

Labour: Healthy Homes Bill Passes First Reading

Some of New Zealand’s most vulnerable children and families are on their way towards safer living conditions with the passing of the first reading of the Healthy Homes Guarantee Bill in Parliament last night, Leader of the Opposition Andrew Little says. More>>

ALSO:

Werewolf Satire: Home, And A Way

The one thing even more popular than an Auckland house is offering advice on how to afford an Auckland house. So, on the grounds it can’t be worse than some of the stuff that’s out there, here’s my three cents* worth. [*Up 50% since 2013!] More>>

ALSO:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news