Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Government “opening of the books” shows wasted opportunity

Media release

Government “opening of the books” shows wasted opportunity

“The economic and fiscal forecasts in the pre-election update – the ‘opening of the government’s books’ – shows how the Government has failed to grasp the opportunity of the Global Financial Crisis to rebalance the economy,” says CTU economist Bill Rosenberg. “We are seeing forecast economic growth rates that peak in March next year and rapidly decline to the mediocre – around 2.1 percent and well below growth rates in the 2000s before the crisis. The current account deficit blows back out to over 6 percent of GDP within two years. Productivity growth is forecast to be mediocre and falling.”

“This is an economy which relies on commodity exports with notoriously unreliable returns as Bill English reminded us, an earthquake rebuild and construction in Auckland. The high value, high wage economy is nowhere in sight,” Rosenberg says.

“The forecasts show real wages falling behind productivity growth over the next four years, meaning wage and salary earners will not be getting their share of what the economy can afford. Unemployment is forecast to still be above 5 percent in 2016, with 132,000 unemployed. The best it gets is 4.5 percent (117,000 people), despite New Zealand doing much better during the 2000s.”

Rosenberg says that the Government’s forecast of its own expenses show falls in real spending per person affected in Health, Education and Social Welfare and Working for Families. “These count on state service employees continuing to tolerate pay increases below the rest of the workforce, along with major restructuring and loss of services after the election if National is returned to power. Even using all the forecast operating allowances to fill the gaps would not be enough – and that does not allow room for new or expanded services. Tax cuts would make the position even worse.”

“The excessive focus on cutting spending ignores growing deficits and imbalances elsewhere in the economy and society. They cannot be ignored for ever. They include low wages, high levels of inequality and poverty, climate change, the ageing population, the unbalanced economy, and growing gaps in health and education. These policies will leave a legacy of social, economic and environmental deficits for future Governments,” Rosenberg said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river.

“Despite an explicit assurance from Minister Smith that the new water standards would provide for human and ecosystem health, he has failed to deliver on either of these things,” says Forest & Bird CEO Kevin Hague. More>>

 
 

Mayor: 750 New Social And Affordable Homes For Wellington

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Private Provision: First Social Bond To Focus On Mental Health

New Zealand’s first social bond will help around 1700 people with mental illness into work, Finance Minister Steven Joyce and Social Investment Minister Amy Adams say. More>>

ALSO:

Immigration: Short Reprieve For Nine Indian Students

A temporary hold on deportations of nine Indian students is a step in the right direction but the Government urgently needs to implement safeguards to stop further injustices to more international students, the Green Party says. More>>

EARLIER:


Megaupload Case: High Court Rules Dotcom, Co-Accused Eligible For Extradion

Internet entrepreneur Kim Dotcom and his three co-accused are eligible for extradition to the United States, New Zealand's High Court ruled... Justice Murray Gilbert upheld a decision by the District Court that there were grounds for Dotcom, Mathias Ortmann, Bram van der Kolk and Finn Batato to be extradited. More>>

ALSO:

PREVIOUSLY:

Port Hills Fire: Midday Update, Monday 20 February

• 9 homes destroyed
• 2 homes with partial damage. Damage includes things like cracked windows, heat damage.
• 3 properties with damage to other external structures e.g sheds or outbuildings More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news