Parliament

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.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog
More RSS News Alerts