Parliament

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

 

Shipley's weak economic grasp sorely exposed

Labour
2000 web site"No wonder the Prime Minister is trying to duck as many election campaign debates as possible. She must be worried that her weak grasp of basic economics will be exposed," Labour finance spokesperson Michael Cullen said today.

"She is right to worry if her silly comments in Tauranga yesterday on the "four fundamentals for growth" are the best she can do.

"Fortunately for Mrs Shipley only 50 people from an invited guest list of 200 bothered to turn up to the meeting. Unfortunately for Mrs Shipley, one of those people was a journalist there to report her speech," Dr Cullen said.

"The first of Mrs Shipley's "four fundamentals" - controlling inflation - is the work of the Reserve Bank and has nothing to do with the Government. The second, reducing interest rates, actually reflects poor economic management by National.

"And there is no evidence to suggest that the last two - cutting taxes and the Employment Contracts Act - have been good for the economy," Dr Cullen said.

· Controlling inflation: This stems from the Reserve Bank Act, passed by Labour in 1989. The Act entrusts the task of controlling inflation to the Governor of the Reserve Bank and specifically protects his independence from government in the conduct of monetary policy.

· Reducing interest rates: Interest rates and the exchange rate are low now because of the recession of 1998, not because of good economic management. On the contrary, the National Government's response to the Asian crisis tipped New Zealand into recession - a recession Australia managed to avoid despite a stronger exposure to Asia. And projections are for interest rates to rise as the economy recovers.



· Cutting taxes: There is no hard economic evidence to show that tax cuts lead to sustainable economic growth, no matter how much National and Act would like us to believe it. What we have seen from the 1996 and 1998 tax cuts is a reduction in Government and private savings and a splurge in imports which is putting pressure on the already high current account deficit.

· The Employment Contracts Act: Reserve Bank figures show productivity growth has fallen under the ECA from an average of 2 percent a year to 0.36 percent. The unemployment rate has averaged 7.9 percent under the ECA compared to an average of 5.3 percent from 1986 when the Household Labour Force Survey began to 1990. Many of the jobs which have been created under the ECA are low paid, part-time and casual, or all three.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Reforming Parliament’s Toxic Culture

It would be nice to think Parliament was a forum where rationality ruled – and where policies are raised and evaluated in terms of their contribution to the greater good. Obviously, it isn’t like that... More>>

Historic Assualt Allegation: Parliamentary Service Staff Member Stood Down
Rt Hon Trevor Mallard said today: “I do not want to cut across any employment or possible police investigations, but I am satisfied that the Parliamentary Service has removed a threat to the safety of women working in the Parliamentary complex." More>>


 

PM And FinMin's Post-Cab: Mental Health Inquiry And Budget Responsibility

Prime Minister Jacinda Ardern was joined by Minister of Finance Grant Robertson for the last post-cabinet press conference before Thursday's budget. The Government will also announce its delayed response to the mental health inquiry this week. More>>

Budget: New Service For Young People Leaving Care

The Wellbeing Budget contains funding to build a new nation-wide Transition Support Service which is expected to help around 3,000 young people over the next four years after it starts on July 1. More>>

ALSO:

Children's Commissioner: Too Many Youths On Remand In Secure Facilities

It is unacceptable that young people are being remanded to youth detention facilities on charges that have not been proven, Children's Commissioner Andrew Becroft says. More>>

ALSO:

Media Fund: New Alliance For Local Democracy Reporting

The pilot will see eight journalists recruited to provide local democracy news to a wide array of media. Funding will come from the RNZ /NZ On Air Innovation Fund, a one-off $6m fund announced last year. More>>

Gordon Campbell: On Coal’s Negative Message To The School Protest

As schoolkids around the world commited to another round of protest action against climate change, the re-election of (a) the Morrison government in Australia and (b) the Modi government in India have been a kick in the teeth for future generations. More>>

ALSO:

Fatal 2018 Crash: Police Officer Should Not Have Engaged In Pursuit

The Independent Police Conduct Authority has found that a Police officer should not have tried to stop or pursue a car thought to contain young people in Palmerston North on 28 May 2018. More>>

ALSO:

New Poverty Targets: Goals Overlook 174000 Children In Worst Poverty

Child Poverty Action Group is pleased to see the Government set ambitious 10-year targets for child poverty reduction, but we are disappointed not to see a target set for improving thousands of young lives where the worst of poverty is found. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels