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

 


Soaring debt shows National poor economic managers

19 August 2014

Soaring debt shows National poor economic managers

Treasury’s pre-election update today shows net government debt will be substantially higher than forecast just three months ago, the Green Party said today.

“National like to paint themselves as a safe pair of hands on economic management, but Treasury figures show that net debt is projected to be $3 billion higher in 2018 than projected in the May budget,” Green Party Co-leader Russel Norman said.

“That equates at $663 per New Zealander in the last three months alone.

“In six years of National management, net debt per person has risen to $14,368 from $2,994.

Treasury’s Pre-election Fiscal and Economic Update (Prefu) showed that net debt will rise to $67.9 billion in 2018, almost exactly $3 billion more than forecast in the May budget.

“The Prefu showed the Budget surplus for 2014/15 is even more wafer thin than projected in May, while the surpluses for the next three years are substantially lower,” Dr Norman said.

“The lower surpluses result from lower forecast economic growth essentially due to lower dairy prices.

“This exposes National as managers that have no clothes. Only a poor manager would make the economy more reliant on commodities such as milk powder and logs, as National has done, and now our fortunes swing to the vagaries of international commodity prices.

“Treasury identified the main factors supporting economic growth as house building in Christchurch and Auckland and faster population growth based on high immigration. This is an dependent economy, not a rock-star economy.

“One thing that hasn’t changed since May is that National is stripping funding, in real terms, from the health, education and environment sectors to the tune of at least $3.8 billion over the next three years.”

Independent analysis of the Government’s books, by economic consultancy BERL, commissioned by the Green Party, reveal National is planning multi-billion dollar cuts to health, education, and environment spending over the next three years in real terms.

“National is being tricky with the books. This is a deliberate deception so National can claim a budget surplus when the reality is that hospitals will be under even greater pressure to cut services while every child in education will be worse off,” said Dr Norman.

“At the time of the Budget in May, National brushed off criticism of these cuts saying they weren’t true. That was spin. National’s cuts to health, education and environment spending are real.

“We will produce stronger surpluses, pay down debt faster, plug spending holes in the current Government’s budget that will lead to a more prosperous New Zealand.”


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Last Rites For The TPP

The Trans Pacific Partnership trade deal is one of those litmus issues that has always had more to do with one’s place on the political spectrum than with any imminent reality.

To date, the Greens have opposed (a) a wide range of the leaked content of the TPP (b) the secretive way it has been negotiated and (c) the undemocratic way in which any final document would be ratified. Labour has shared some of those concerns, but while remaining generally supportive of the deal itself.

National has, for its part, been very enthusiastic about the TPP, while still giving assurances about Pharmac being protected... For the TPP’s friends and foes alike though, the end now seems nigh. More>>

 
 

Gordon Campbell: On The Farcical Elevation Of David Seymour

With the election won, it’s time to find jobs for the boy. David Seymour is the Act Party’s latest scrounger to be rewarded by the National Party, and not only with a seat in Parliament. More>>

ALSO:

As Key Mulls Joining ISIS Fighting: McCully Speech To UN Backs Security Council Bid

It is an honour to address you today on behalf of the Prime Minister and Government of New Zealand. Our General Election took place last week - our Prime Minister Rt Hon John Key is engaged in forming a government and that is why he is unable to be here in New York... More>>

ALSO:

Labour: Cunliffe Triggers Party Wide Leadership Contest

David Cunliffe has resigned as Labour Leader, but says he will seek re-election... If there is any contest the election will have to go through a process involving the party membership and union affiliates. More>>

ALSO:

Flyover Appeal: Progress And Certainty, Or Confusion And More Delays?

Lindsay Shelton: The Transport Agency, embarrassed by the rejection of its flyover alongside the Basin Reserve, says it’s appealing because the decision could “constrain progress.” Yet for most clear-sighted Wellingtonians a 300-metre-long concrete structure above Kent and Cambridge Terraces would in no way be seen as progress… More>>

ALSO:

Gordon Campbell: On Cunliffe’s Last Stand

Right now, embattled Labour leader David Cunliffe has three options. None of them are particularly attractive for him personally, or for the Labour Party... More>>

ALSO:

Key Seeking 'New Ideas': Look To Children’s Commissioner On Poverty - Greens

John Key should not reinvent the wheel when it comes to ideas for tackling child poverty, and instead look to the recommendations of the Children’s Commissioner’s Expert Group on Child Poverty, Green Party co-leader Metiria Turei says. More>>

ALSO:

'Safe To Re-Enter' - OIA Docs: Safety Is Absolute Priority At Pike River Mine

“We understand that the time it is taking to complete our evaluation of the risks is frustrating for the family members and we are trying to complete this work as quickly as we can,” Ms Dunphy says. “It is Solid Energy’s responsibility to make this decision and we will do so, once we have all the information required to make a fully-informed decision.” More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
More RSS  RSS
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news