"The great Kiwi consumption splurge continues to put more pressure on our external accounts as imports boom while the export sector struggles to find its feet," Labour finance spokesperson Michael Cullen said today.

The latest trade figures were far worse than the markets were expecting and are expected to produce the first monthly June deficit in 14 years.

"On a quarterly basis, imports were $526 million higher than the June 1998 quarter. Big contributors to this were consumer goods, up $91 million over the same period last year, and cars which were up $209 million.

"The continuing imbalance in the economic recovery reflects the failure of policy over the last several years to strengthen, diversify and add value to New Zealand's export base and to achieve the transition from a commodity-based to a knowledge economy.

"Labour's concerns on that score are shared by the hi-tech giant Motorola, and may deter Motorola from establishing a facility here," Dr Cullen said.

Dr Cullen was referring to comments by Ron Nissen, Motorola Pacific vice president and general manager. Mr Nissen said he was concerned about how strongly New Zealand was focused on having "a significant presence in this whole information economy/knowledge-based business."

"It is an appalling commentary on nine years of National government that a company of this sort should have these doubts about New Zealand's commitment to a high technology, knowledge intensive future," Dr Cullen said.

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>