Parliament

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

 

Current account: Credit downgrade inevitable

Current account deficit: Credit downgrade inevitable

Jim Anderton MP Thu Sep 23 1999

Jim Anderton
MPNew Zealand's credit rating will inevitably be downgraded regardless of the outcome of the election, Alliance leader Jim Anderton said today following the release of figures showing a sharp deterioration in New Zealand's overseas deficit.

New Zealand spent $6,292 million more than we earned in the year to the end of June. The deficit amounts to 6.3% of everything the economy produced last year, compared to 5.8% in the year to March and 4.9% in the year to June 1998. It's New Zealand's worst current account deficit since 1986 (if the 1997 purchase of Te Kaha is excluded).


Statistics New Zealand targets foreign investment as 'a significant factor in the current account deficit.' Overseas investors made $1,719 million from New Zealand in the three months to June, while New Zealand investments overseas lost $170 million.


Jim Anderton says New Zealand's current account deficit is serious and chronic.


'New Zealand's credit rating will inevitably be downgraded because we are not paying our way in the world. The down-grade will mean higher interest rates for all New Zealanders.


'The deficit highlights the way our export sector has been damaged. Exports are traditionally at their highest at this time of year and yet New Zealand has recorded unusually poor export results coupled with a sharp rise in imports.


'Lower exports of primary products such as dairy, wool, casein and meat were the main factor in declining export earnings. That shows the disastrous and sustained impact the government's economic management and monetary policies have had on our main export earners. It also emphasises the need for incentives to establish new-technology export industries to reduce our reliance on the commodities sector.


'The challenge to other parties is to state how they intend to bring the economy back into balance without allowing the balance of payments deficit to cause a recession. The Alliance is recommending a 5% tariff increase on all imports other than from Australia,' Jim Anderton said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Malaysia Exposing Our Dodgy Policies On China

Last week, we all owed a vote of thanks to Malaysian PM Mahathir Mohamad for breaking with protocol during his bilateral meeting in Singapore with New Zealand PM Jacinda Ardern. Reportedly, Mahathir used the photo opportunity phase of the meeting – which usually involves just an exchange of smiles and pleasantries before the media is sent out of the room – to launch into matters of genuine substance.

By doing so, Mahathir usefully exposed how New Zealand is trying to make a virtue out of sitting on the fence over the South China Sea dispute. More>>

 

Climate Change: Top Academics Call On Government To Take Action

One hundred and fifty academics and researchers from around Aotearoa, including Dame Anne Salmond, Emeriti Professors and several Fellows of the Royal Society, have signed a strongly-worded open letter to the Government demanding bold and urgent action to tackle climate change. More>>

ALSO:

Teacher Qualifications, Class Sizes: Ten Year Plan For Early Learning

“Moving towards 100 percent qualified teachers in early childhood education centres and improving adult:child ratios are among some of the key proposals for change put forward by the sector and experts in the new draft ten year strategic plan for early learning,” Chris Hipkins said. More>>

ALSO:

Teacher Strikes: Meeting, March And Rally In Wellington

Throughout the Wellington region the NZEI rolling strikes entered their final day Friday. Thousands of teachers met in Wellington, Kapiti, Porirua and the Wairarapa. More>>

ALSO:

14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>

ALSO:

Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>

ALSO:

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels