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


Building on a deflationary spiral


Finance Spokesperson

31 January 2012


Building on a deflationary spiral

Figures out today showing building consents are at their lowest since records began in 1965 are another example of this Government’s unambitious economic ‘management’, Labour’s Economic Development spokesperson David Cunliffe says.

"With just 13,662 new consents issued last year - down 13% on the already woeful 2010 - today's data fits with a slew of disturbing recent news that shows real Kiwi businesses are suffering.

“The deflation in the last quarter of 2011 ‘surprised’ the government apparently, the Reserve Bank is keeping the OCR on hold well into 2012, tax forecasts are down and John Key is warning the return to surplus in 2014/15 is a fading dream,” David Cunliffe said.

"The Prime Minister can't talk down expectations fast enough to excuse the sad mess that is the domestic economy.

“His Finance Minister wants to cut spending further and Steven Joyce has vanished without trace. Major New Zealand banks are now warning that the first quarter of 2012 at least will be no better than 2011.

"This has all the signs of a classic deflationary spiral,” David Cunliffe said.

"The answer is not more retrenchment, but a real economic development plan that will create jobs and boost growth.

"New Zealanders have given up waiting for one from this directionless National Government, whose answer to every problem appears to be to cut it down and sell it off.

"Labour will champion an alternative approach that gets Kiwis back to work building the country, up not selling it off,” David Cunliffe said.

“Even John Key’s cycle trail has petered out somewhere between a mountain and Oamaru.”

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Chilling The Warm Fuzzies About The US/China Trade Deal

Hold the champagne, folks. This week’s China/US deal is more about a change in tone between the world’s two biggest economies – thank goodness they’re not slapping more tariffs on each other! - than a landmark change in substance. The high walls of US and Chinese tariffs built in recent years will largely remain intact, and few economists are predicting the deal will significantly boost the growth prospects for a slowing US economy. As the New York Times noted this morning, the likes of New Zealand will still face the trade barriers imposed by the Trump administration during the recent rounds of fighting. More>>


PGF Kaikōura $10.88M: Boost In Tourism & Business

The Provincial Growth Fund (PGF) is investing $10.88 million to boost business and tourism opportunities in Kaikōura, Parliamentary Undersecretary for Regional Economic Development, Fletcher Tabuteau announced today. More>>


Whitebaiting: Govt Plans To Protect Announced

With several native whitebait species in decline the Minister of Conservation Eugenie Sage has today released proposals to standardise and improve management of whitebait across New Zealand. More>>


Education: Resource For Schools On Climate Change

New resource for schools to increase awareness and understanding of climate change... More>>


In Effect April: New Regulations For Local Medicinal Cannabis

Minister of Health Dr David Clark says new regulations will allow local cultivation and manufacture of medicinal cannabis products that will potentially help ease the pain of thousands of people. More>>


RNZ: New Year Honours: Sporting Greats Among Knights And Dames

Six new knights and dames, including Silver Ferns coach Dame Noeline Taurua and economist Professor Dame Marilyn Waring, have been created in today's New Year's Honours List. The list of 180 recipients - 91 women and 89 men - leans heavily on awards for community service, arts and the media, health and sport.


Gordon Campbell: On What An Inquiry Might Look Like

Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>






InfoPages News Channels