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

 


Nats fail to rebalance the economy

20 March 2013

Nats fail to rebalance the economy

The $10 billion a year current account deficit is proof of National’s failure to manage the economy and puts New Zealand on a dangerous path of unsustainable debt, Green Party Co-leader Dr Russel Norman said today.

“The sucking sound is getting louder as more and more of New Zealand’s wealth is siphoned out of our country and heads overseas,” said Dr Norman.

“National has failed to rebalance the economy. Our current account deficit is now over $10 billion a year and growing.

“The over-valued dollar is hurting our exporters and letting imports undercut local businesses. The result is we’re importing more than we export.

“That costs jobs and means we have to take on debt or sell assets to cover the gap. We now owe the world a net $150 billion.

“In the last year, we lost $10 billion in net interest payments and dividends to overseas investors. That’s a huge slice of the wealth our economy created disappearing overseas.

“National’s response is to bury its head in the sand and pretend there’s no problem. But the forecasts are clear. On our current path, Treasury projects that our net international debt will explode to over $200 billion within four years.

“To turn this situation around we urgently need a suite of measures that bring down the currency so our businesses can compete on a level playing field and that control foreign investment to stem the flood of money that we’re losing overseas.

“The smart, green solutions are not revolutionary, or even unorthodox. They’re sensible, well-proven measures like capital gains tax excluding the family home; giving the Reserve Bank a mandate to protect Kiwi jobs and the tools to do it; and government procurement policy that unapologetically favours Kiwi businesses and Kiwi jobs.

“If we want a successful economy, we need to fix the problems that are leading us into unsustainable debt. If we stay on the path we’re on, the destination is Greek-style collapse,” said Dr Norman.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Gordon Campbell: On The Economic Bad News (And Turkey’s Fears About The Kurds)

Traditionally, voters regard National as a more competent manager of the economy. It is the sole upside of crony capitalism: surely these guys must know what their mates in business want and need. These last few months though, have put that faith sorely to the test... More>>

ALSO:

Discussion Document: Fresh Look At Family Violence Laws

A discussion document launched today takes a hard look at the way the law prevents and responds to family violence, and proposes a comprehensive rethink to strengthen New Zealand’s legislative response. More>>

ALSO:

PM's Presser: ‘Precarious’ Solid Energy In Banks’ Hands

Liquidation of state-owned coal company Solid Energy “cannot be ruled out” but is “not the number one preferred option of the government,” says Prime Minister John Key, who confirmed the beleaguered company was discussed today at Cabinet as its banking syndicate grapples with its commercially dire prospects. More>>

ALSO:

Missed Opportunities: Amnesty International Report Card On NZ's UN Role

As New Zealand steps down from its month as President of the Council, Amnesty International has taken the opportunity to review New Zealand’s role on the Council so far and assess their performance and contribution to protecting human rights worldwide. More>>

ALSO:

Prince Charles Get More Jobs: PM Announces Honorary Military Appointments

PM John Key has announced that Her Majesty The Queen has approved the appointment of HRH The Prince of Wales to three honorary positions: Admiral of the Fleet of the Royal New Zealand Navy; Field Marshal, New Zealand Army; Marshal of the Royal New Zealand Air Force. More>>

ALSO:

No TPP Deal: Gordon Campbell On Why We Should Still Oppose Investor-State Dispute Measures

Even in this dark hour for the TPP, the secrecy farce continues... What is left to hide? Every single negotiator went into those talks in Maui knowing exactly where everyone else stood. More>>

REACTION:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news