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

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

To date, the Opposition has continued to occupy itself with the marginalia of the issue. E.g. whether Key did or didn’t know whether Barack Obama would be present at the US briefing last week on IS, or whether New Zealand’s military involvement is or isn’t already a fait accompli.

It might be better to tackle the issue, head on. Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn.
More>>

 

Parliament Today:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Labour: Tea Breaks 'Gone By Lunch Time'

“How cynical that on the eve of Labour weekend, the National government is pushing through legislation that takes away the statutory right to tea and meal breaks along with collective bargaining protections, and makes vulnerable workers jobs even less secure." More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Tertiary Education: Students Doing It Tough As Fees Rise Again

The Government is making it increasingly difficult for Kiwis to gain tertiary education as fees continue to rise and access to student support becomes even more restricted, Labour’s Tertiary Education spokesperson Chris Hipkins says. More>>

ALSO:

Housing, Iraq: PM Press Conference – 20 October 2014

Prime Minister John Key met with press today to discuss:
• Housing prices and redevelopment in Auckland
• Discussions with Tony Abbott on the governmental response to ISIS, and New Zealand’s election to the UN Security Council More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news