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

Last Days Of Parliament: Slave Ships Bill To Pass

The House resumed at 9am and MPs agreed to add the third reading of the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill to this morning’s business.

The bill requires all foreign owned fishing vessels to fly under a New Zealand flag from May 2016 and obey all New Zealand laws. This includes labour laws...

Last night Opposition MPs accused the Maori Party of blocking the passage of this bill into law in this Parliament, no members of the Maori Party were in the House to answer the accusations though they denied this in a press release. More>>

 

Parliament Today:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Greens: Plan To Protect Our Maui’s Dolphins

1. Protect Maui’s from being killed in the sanctuary set up to protect them... 2. Extend fishing protections to the entire Maui’s range... 3. Help protect the livelihoods of affected fishers by supporting them to adopt dolphin-safe fishing methods. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news