Bill English

National Finance Spokesperson

Thursday 14 September 2000

Accounts show economy's high tide mark

The strength of the Crown Financial Statements reflects the vigour of the economy the Labour Government inherited, National Finance spokesperson Bill English said today.

"The pity for New Zealanders is that in nine months the economy has been choked off. It will be a long time before we see a set of accounts like this again.

"The accounts highlight the strong fiscal position New Zealand was in as we handed the Treasury benches to Labour at the end of last year.

"Contrast this with recent forecasts from some commentators suggesting recession and a fiscal deficit for the current financial year.

"Market expectations now are for no growth in the first half of 2000 once the figures come through.

"This creates a huge problem for the Government. They have front-loaded their spending and the economy is not performing. This puts the entire fiscal strategy at risk.

"New Zealand should now be in a position to build on the strong economic and fiscal legacy of the National-led Government. Instead it is being squandered by bad economic management and bad policy - and New Zealanders are paying the price," Mr English said.

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