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


History repeating as country moves deeper into deficit

History repeating as country moves deeper into deficit

The National Government is sitting on its hands as history repeats itself and New Zealand’s international deficit grows on the back of a housing bubble, Green Party Co-leader Dr Russel Norman said today.

Figures released today by Statistics New Zealand show that the current account deficit has risen to 4.1% of GDP, or $8.8 billion. Treasury projects it will rise to 6.5%, or $16.7 billion, in 2017. Since National has been in power, the current account deficit has totalled $29 billion.

“John Key and Bill English set themselves the task of preventing New Zealand going through another round of housing bubbles fuelled by international borrowing. They’ve failed,” said Dr Norman.

“For the first time in five years New Zealand has imported more goods and services than it has exported. This is bad news.

“The same borrow and spend pattern that drove New Zealand deep into debt in the 2000s is repeating.

“If National were true to their own promises, they would be ringing the alarm bells as the country’s deficit grows. They’re staying silent in the hope that they can pass off reckless borrowing as sustainable growth in election year.

“One cause of the current account deficit is our relatively high interest rates, which lead to an over-valued currency. New Zealand’s relatively high interest rates are bringing in international cash that fuels our housing bubble. As a result, our banks owe $100 billion overseas and send over $3 billion of profits overseas each year.

“Borrowing more and more money from overseas so that we can sell our houses to each other at ever-higher prices is not a path to prosperity. It’s a bubble economy.

“National’s high dollar policy is strangling our hi-tech exporters and fuelling imports. The rising dollar is costing us well-paid, high-skill manufacturing jobs and letting foreign imports undercut domestic businesses.

“The Green Party economic plan will focus on bringing down the dollar to a fair level; stabilising the housing market by driving out speculators and giving families an affordable pathway to home ownership; and backing our high-tech manufacturers so that they can sell their products to the world,” said Dr Norman.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Gordon Campbell: On The TPP Countdown, And Mary Margaret O’Hara

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news