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

 


Focus On Surplus Distracts from Failure On Rebalancing

11 April 2013

Focus On Surplus Distracts from Failure On Rebalancing

The National Government's singular focus on one measure of economic performance – returning the Government’s budget to surplus – is distracting attention away from their failure to rebalance the economy and create jobs, the Green Party said today.

The Financial Statements of the Government for the nine months to March 31, 2013 were released today and show that the Government’s deficit was $273 million lower than forecast due to tax revenue being $535 million higher than expected.

“The growth of Bill English’s record heap of Government debt is finally slowing, but there’s more to managing a smart, green economy than simply returning the Government’s annual budget to surplus,” said Green Party Co-leader Dr Russel Norman.

“National’s singular focus on fiscal surplus is a distraction from their wider failure to rebalance the New Zealand economy onto a more sustainable and job-rich path.
 
“New Zealand’s current account deficit is one of the biggest in the OECD, currently at 5 percent of GDP and growing. This compares to an OECD average deficit of 0.6 percent.
 
“As a country we are financing this deficit by borrowing and selling assets; we can’t keep living beyond our means indefinitely.
 
“Strong economic growth in the non-tradable sectors, such as construction and retail, is hiding the fact that the tradable sector is languishing under National’s economic management.
 
“A shrinking tradable sector combined with a strongly growing non-tradable sector means only one thing – increased borrowing, greater foreign ownership of our economy, and a further deterioration of the current account deficit.
 
“This is not a strong, sustainable economic recovery. Bill English has failed to rebalance the economy as promised.
 
Dr Norman was also critical of the failure of the National Government to implement a capital gains tax to assist with economic rebalancing.
 
“A tax on capital gains (excluding the family home) would help take some of the heat out of rising house prices in Auckland while simultaneously speeding the Government’s return to surplus,” Dr Norman said.
 
“A capital gains tax would drive much-needed investment from property speculation into the productive economy, further assisting economic rebalancing.
 
“The Green Party has the courage to develop solutions to address the deep structural weaknesses with our economy, delivering jobs and shifting our economy onto a stronger, more sustainable footing.”
 
ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Post-Cab Press Conference: Foreign Buyers Register, TPP And Serco

At a press conference today in Wellington, John Key discussed the foreign buyers register as well as the TPP and Serco. Key was questioned on whether a stamp tax might be used as a tool to deal with foreign buyers. More>>

ALSO:

Lyndon Hood Satire: Serco To Outsource Prison To Public Sector

In response to high-profile failings, multinational omnicorporation Serco will introduce public management in its prison system. Serco's New Zealand manager, speaking on condition of anonymity, has announced plans for managers from the Department of Corrections to run the Mt Eden Correctional Facility. More>>

National Party Conference: Plans To Nudge Immigrants Towards Regions

The Government will introduce a package of immigration measures aimed at improving the spread of workers, skills and investment across New Zealand, Immigration Minister Michael Woodhouse says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news