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


‘Rock star’ economy hitting the rocks

26 August 2014

‘Rock star’ economy hitting the rocks

National’s so-called ‘rock star’ economy is unravelling and today’s trade figures for July showing a 7.5 percent fall in exports from June is a sign of the trouble ahead, the Green Party said today.

“The 5 percent fall in dairy exports, is indicative of the problems ahead and demonstrates the folly of National’s polluting economy relying so heavily on commodities,” Green Party Co-leader Dr Russel Norman said today.

“Dairy comprised nearly 42 percent of all exports in the year to July while manufactured exports have dropped to 21.6 percent of total exports from 28.9 percent when National tool office.

“It shows how the manufacturing sector, where so many jobs come from, has been hollowed out under National.

“Bank economists are now saying that New Zealand’s so called ‘rock star’ economy could soon hit the rocks and the lack of any coherent strategy by the Government risks a ‘hard landing’ once temporary factors such as the Christchurch rebuild and high dairy prices wear off and New Zealand families will feel the hangover.

“Treasury in its Pre-election Economic and Fiscal Update last week stated the main two factors of economic growth were residential house building in Christchurch and Auckland together with high immigration fuelling consumption – hardly a solid basis for sustainable prosperity.

“According to Westpac chief economist Dominick Stephens, New Zealand's recent growth has been fuelled by the Canterbury earthquake rebuild, low interest rates and a surge in net migration.

“He warns high immigration could abruptly end and when the Canterbury rebuild is complete, people will be surprised by the size of the economic downturn.

“There has been a blind faith in National’s economic management and the reality proves that’s misguided.

“National’s plan is based on increasing the volume of dairy production. Not only will this further pressure an already highly stressed environment, but its plain bad economics.

“Dairy prices have plunged over 40 percent since February due to increased supply – adding more volume will only reduce prices more.

“National is offering nothing to mitigate the dangers the bank economists warn of. National’s solution is commoditisation and more volume, which means more pollution, not diversifying and not adding value.

“Even in Christchurch National has no plan for the future. Their focus is one-off projects like the stadium and the convention centre, rather than building a comprehensive, integrated public transport network that has benefits for all that lasts for generations.

“The Green Party has a clear plan and policies to implement it. We need to build an economy based on innovation and adding value to products made here together with reducing reliance of fossil fuels – a greener, smarter economy that benefits all.

“We will invest an extra $1 billion in Research and Development in the next term, doubling the Government R&D contribution,” Dr Norman said.

© 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