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

 


National’s Train Wreck of Debt Gathers Momentum

National’s Train Wreck of Debt Gathers Momentum

National’s self-proclaimed ‘Building Momentum’ Budget is looking more like an out of control debt train wreck with the country’s overseas net debt topping $200 billion by 2017 and the current account deficit topping $17 billion a year, the Green Party said today.

Both the Reserve Bank Governor and the IMF have signalled early warning signs of an economy that has not rebalanced successfully towards savings, investment, and export-led growth. Budget 2013 confirms that direction.

“Budget 2013 does nothing to address the fundamental imbalances emerging in our economy meaning this recovery will be neither jobs-rich nor sustainable,” said Green Party Co-leader Dr Russel Norman.

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

“Bill English made rebalancing the economy his primary goal in earlier budgets. In Budget 2013, he failed to mention it once.

“The current account deficit is the key economic measure of the success or failure of the broader economy. Treasury now forecasts the deficit to rise to 6.5 percent in 2017 making our deficit the second worst in the developed world. 

“This is a debt time bomb that a return to Government surplus alone will not address.”

Dr Norman highlighted emerging imbalances in the housing sector as the most dangerous for the economy.

“National’s new housing policy is too little too late, and will serve the interests of property developers more than it will help first home buyers and those looking for a house to call home in Auckland,” Dr Norman said.

“It comes long after the Greens have announced practical solutions, like Home for Life and a tax on capital gains (excluding the family home), to address an anticipated housing shortage and housing affordability crisis.

“National’s on-going failure to institute a capital gains tax means they’re still to close the single largest remaining loophole in our income tax system.

“Selling assets, massively increasing debt, a new housing bubble, and the earthquake rebuild might keep the train on the track until the election, but it will lead to major problems further down the track. It is an out of control train wreck of debt that future New Zealanders will one day have to pick up the bill for.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"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>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news