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

 

Vaccine Funding Change: HPV Vaccines For All Children

PHARMAC has today announced changes to funded vaccines, which will benefit an extra 100,000 people... The human papillomavirus (HPV) vaccine will be available for all children and adults up to the age of 26 years, and boys will now be included in the HPV school vaccination programme. More>>

ALSO:

Gordon Campbell: On Why The Opinion Polls For Key And Trump Defy Gravity

What is going on? Donald Trump got confirmed as the Republican presidential candidate at a bizarrely chaotic political convention… and promptly received an upwards bump in the polls to where he’s now rating ahead of Hillary Clinton, for only the second time this year. More>>

Sugar: Auckland Leisure Centres Axe Unhealthy Drinks

Auckland Council is to stop selling drinks that are sweetened by sugar from vending machines at its leisure centres in a bid to try to reduce obesity and type 2 diabetes... More>>

ALSO:

Gordon Campbell: On Todd McClay’s Faulty Memory

Time and again, whenever an issue arises the initial response by government is to deny or diminish the problem – nothing to worry about here, everything’s OK, move on. Then, hang on. In line with the usual pattern, as embarrassing details emerged into daylight, the story changed. More>>

ALSO:

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news