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

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news