Parliament

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

 

Slowing economy will reduce wellbeing

6 June 2019

The Treasury’s economic growth forecasts are significantly more optimistic than other institutions and bring into question whether the Government will be able to run a surplus and meet its own self-imposed debt targets, National’s Finance spokeswoman Amy Adams says.

“Under this Government the economy has slowed from 4 per cent GDP growth to barely 2 per cent because of bad policies, uncertainty and no plan to grow the economy.

“Data compiled by the Parliamentary Library show that the Treasury’s economic forecasts over the next year significantly exceed those by ANZ, Westpac and NZIER. The Treasury’s annual GDP forecasts for the year to March 2020 are 0.7 per cent higher than ANZ and 0.4 per cent higher than NZIER.

“Economic growth is important because it affects how much tax revenue is collected and how much government must spend on demand-driven areas like welfare. Budget 2019 even outlines that if GDP growth is 1 per cent a year lower, then the Government will receive about $865 million less tax revenue.

“If the Treasury’s forecasts do prove too optimistic then the Government will struggle to run a surplus next year without either reducing spending or raising taxes.

“The Government also has very little wriggle room to meet its self-imposed debt target of 20 per cent of GDP by 2022. The Budget showed debt tracking to 19.95 per cent of GDP in 2022. If GDP is slower than the Treasury expect - as now seems likely - then the Government will have no choice but to cut spending, raise taxes on New Zealanders or break its own fiscal responsibility rules.

“A strong economy is the only sustainable way to improve living standards and wellbeing for New Zealanders. Without a strong economy the Government can’t afford to sufficiently fund health, education and infrastructure, or provide tax relief for hardworking New Zealanders.

“The Government seems to be more focused on marketing and PR than putting together a credible plan to grow the economy, support small to medium sized businesses and reward New Zealanders who are working hard to get ahead.”

Note to editors: Attached is a graph compiled by the Parliamentary library that shows respective annual GDP growth forecasts by the Treasury (Budget 2019), ANZ, Westpac and NZIER between March 2019 and March 2020.

The impact of slower growth on tax revenues can be found in the Budget Economic and Fiscal Update at page 57

http://img.scoop.co.nz/media/pdfs/1906/Growth_forecasts.pdf


ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Ellen Rykers on The Dig: Community Conservation – The Solution To The Biodiversity Crisis?

There are backyard trapping networks doing their bit for Predator Free 2050, farmers planting native trees along their waterways, and iwi protecting whenua rāhui. There are 62 biodiversity sanctuaries across 56,000 hectares, with around two-thirds of them community-led. There are citizen scientists counting birds in their backyards and landowners conserving habitat in 3,500 Queen Elizabeth II National Trust covenants.

It’s increasingly clear that a government agency alone cannot combat the biodiversity crisis successfully. These grass-roots initiatives are a growing resource in the conservation toolbox. More>>

Closing This Weekend! Have Your Say On The Issues For NZ's New Biodiversity Strategy

Scoop and PEP invite you to help decide how we should protect and restore our biodiversity over the next 50 years using Scoop’s online engagement platform, HiveMind. HAVE YOUR SAY HERE>>

Biodiversity HiveMind Preliminary Progress Report
Open data report summarising preliminary findings of the Biodiversity HiveMind. Read Progress Report Here>>

 

PM In Japan: Jacinda Ardern’s Remarks Following Abe Summit

Today we discussed a wide range of topics. Broadly the themes were: a deeper, high-value trade and investment relationship, greater cooperation in the Pacific; and strengthening our security partnership. More>>

ALSO:

Replacing All But Chair: Twyford Appoints Five NZTA Board Members

Transport Minister Phil Twyford today announced the appointment of five new members to the NZ Transport Agency Board... There remain two vacancies on the NZTA Board which will be filled in due course. More>>

ALSO:

Climate Change: Adaptation And Risk Assessment Framework Released

“We are already experiencing the effects of a changing climate such as coastal inundation and increasingly frequent and severe droughts, floods, fires and storms. This framework is an acknowledgement that we must start adapting”, James Shaw said today. More>>

ALSO:

Ihumātao: Mana Whenua Reach Decision On Land

Māori King Tūheitia says mana whenua have finally reached consensus over what to do with Ihumātao - they want it back. More>>

ALSO:

PM To Japan, New York: Ardern To Meet Trump During UN Trip

“I’m looking forward to discussing a wide range of international and regional issues with President Trump, including our cooperation in the Pacific and the trade relationship between our countries." More>>

PM's Post-Cab: "A Way Forward"

At Monday's post-cabinet press conference, Prime Minister Jacinda Ardern announced a number of actions in response to the Labour Party's mishandling of sexual assault complaints. More>>

ALSO:

Gordon Campbell: On Allegations Of Left Wing Media Bias

“Left wing bias” accusations date back at least to the mid 1990s... The charge of left wing bias was ridiculous then, and is ridiculous now. More>>

Next Wave Of Reforms: Gun Registration And Licensing Changes Announced

“The Bill includes a register to track firearms and new offences and penalties that can be applied extraterritorially for illegal manufacture, trafficking, and for falsifying, removing, or altering markings – which are a new requirement under the Firearms Protocol.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels