Rattled rock-star economy turns sour

National’s “rock-star’’ economy is rapidly turning sour as milk prices take another dive, says Labour Leader David Cunliffe.

“We sympathise with the farmers who will struggle to stay afloat with the announcement of a drop in the price of milk solids from $7 to $6 for the 2014-15 season.

“Dairy is a critical part of our economy but the average price for whole milk powder has now fallen 38 per cent since February, wiping billions off the books.

“Today’s announcement will take a further billion dollars out of the economy. The reverberations will be felt throughout the country.

“Labour has been saying for months that National’s so-called rock-star economy has been built on vulnerable commodity prices and Canterbury insurance cheques.

“National is banking on milk and disaster.

“Labour has a complete package of costed policies that will support and enhance traditional industries while diversifying the economy.

“Our monetary policy will help keep interest rates and the dollar down – assisting farmers and other exporters.

“Our economic upgrade, based on investment, innovation and industry will encourage a journey from volume to value – in forestry, manufacturing and other productive sectors across our cities and regions.

“Our Capital Gains Tax and R&D tax credits will help to move the economy from speculation to innovation.

“Labour has a far-sighted vision for a fairer, more prosperous and sustainable society. Our policies will deliver better jobs and higher wages, affordable homes and opportunities for all New Zealand families,’’ said David Cunliffe.

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