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:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news