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

 


IMF confirms National’s failure to rebalance economy

15 May 2013

IMF confirms National’s failure to rebalance economy

The International Monetary Fund (IMF) has confirmed today that the economy remains seriously out of balance, with low household savings and high debt levels.

The IMF states: “New Zealand’s large net liabilities reflect historically low household savings rates and a structural savings-investment imbalance. They agreed that the causes of low household savings will need to be addressed to reduce pressure on the exchange rate and limit current account deficits.”

“The IMF has today confirmed that the wider New Zealand economy is seriously out of balance,” said Green Party Co-leader Dr Russel Norman.

“The National Government has failed to rebalance our economy as promised.

“National has focused its effort on trying to repair the damage done to the Government’s accounts by its $2 billion a year tax cuts to upper income earners and trying to get back into black with a margin of error surplus. National has ignored addressing systematic imbalances in the economy as a whole.

“At the start of the last economic cycle in 1998, average household debt was around 93% of disposable income. This time around, household debt is starting out at 153% of income.

“This is a debt time bomb which the Government can’t solve with its planned razor thin surplus.

“Households aren’t savings because National has failed to create jobs and lift wages, reduced KiwiSaver incentives, and has failed to address the overvalued kiwi dollar.

“Bill English made rebalancing the economy his primary goal in earlier budgets. Now he doesn’t talk about rebalancing at all.”

The IMF has endorsed two of the three Green Party’s solutions to address rebalancing.

“The IMF support a capital gains tax and has welcomed the Reserve Bank’s intention to use macroprudential tools to address the housing bubble,” Dr Norman said.

“The Green Party will also strengthen Kiwibank, allowing it to retain its earnings to grow faster – adding a further capital injection, if necessary. We want to help build Kiwibank into a sophisticated retail and commercial bank, with the scale needed to lend to productive enterprise.

“Under Bill English’s economic mismanagement, the productive economy has languished. This will not be a strong, sustainable recovery. This will not be a jobs-rich economic recovery.”

Link to IMF note on New Zealand:

http://www.imf.org/external/np/sec/pn/2013/pn1351.htm

Link to the BERL report, Rebalancing the New Zealand Macroeconomic Environment – Progress Since 2008:

http://www.greens.org.nz/sites/default/files/berl_report_rebalancing_the_macroeconomy.pdf

Parliamentary Library graph on Bill English’s frequency of use of the term rebalancing:

http://www.greens.org.nz/sites/default/files/bill_english_on_rebalancing.pdf
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Education: Schools Funded To Trial Innovative Approaches

Education Minister Hekia Parata has announced the successful applicants for a new $10 million fund to encourage innovative teaching practices. “I’m delighted with the quality of the 39 projects that have won funding in the first round of the Teacher-led Innovation Fund worth a total of about $2.6 million,” says Ms Parata. More>>

ALSO:

Generation Zero: Skypath Granted Resource Consent

Generation Zero is delighted and relieved that the ‘Skypath’ walking and cycling addition to the Harbour Bridge has been granted resource consent. More>>

ALSO:

Housing: Two New Auckland Special Housing Areas

Two new greenfield Special Housing Areas (SHAs) that will provide up to 1800 new homes in Auckland have been announced today by Building and Housing Minister Dr Nick Smith and Mayor Len Brown. More>>

ALSO:

Royals: The Prince Of Wales And Duchess Of Cornwall To Visit

Prime Minister John Key welcomes today’s announcement that the Prince of Wales and The Duchess of Cornwall will visit New Zealand in November. This will be the second joint visit for Their Royal Highnesses to New Zealand. More>>

ALSO:

Tracey Martin Replaced: Ron Mark Is New New Zealand First Deputy Leader

Clayton Mitchell was the successful candidate for the Associate Whip position. Winston Peters was re-elected as Leader by the Caucus. Ron Mark was elected as the Deputy Leader with effect from 10am, Friday, 3rd July. More>>

ALSO:

Rebuild Rebrand: "Regenerate Christchurch" To Replace CERA

The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes control of the rebuild, Canterbury Earthquake Recovery Minister Gerry Brownlee says. More>>

ALSO:

Nauru: Scholars Urge Minister To Act On Deteriorating Democracy

“Since the 2013 election in Nauru, there has been a series of disturbing developments on the islands that indicate a severe deterioration in the state of its parliamentary democracy and in the rule of law,” say the scholars. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
More RSS  RSS
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news