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

Gordon Campbell: On The Epic Fails Of Kris Faafoi


Ever since Winston Peters first breathed life into this government in 2018, its own branding has been all about social justice and how we all need to be “kind” to each other. Somehow, Kris Faafoi must have missed the memo. His performance in the immigration portfolio (in particular) has neither been kind nor just, especially to the migrants whose skills New Zealand will need to get us through Covid, and grow the economy into the future... More>>

Covid-19 & Government: Government Green Lights Rapid Antigen Testing


Some of the country’s largest businesses have put in an order for 300,000 approved rapid antigen tests for their workforce, after working at pace with the Government on a new scheme unveiled by Associate Minister of Health and Research, Science and Innovation Ayesha Verrall... More>>


ALSO:




 
 


Government: Opportunity To Shape NZ’s First Emissions Reduction Plan
The Government is inviting New Zealanders to inform the country’s first Emissions Reduction Plan with the release of a consultation document containing a range of policy ideas to decrease the country’s emissions, Prime Minister Jacinda Ardern and Climate Change Minister James Shaw announced today... More>>

ALSO:


Government: Books Show Resilient And Strong Economy
The end of year audited Crown accounts released today show the Government’s health led approach to the COVID-19 pandemic has protected New Zealand’s economy. “On almost every indicator the accounts show that the New Zealand economy has performed better than forecast... More>>


Healthcare: Health System Is Ready For Assisted-dying Law
The health system is ready for the implementation of the End of Life Choice Act when it takes effect next month, making assisted dying legal in New Zealand, Health Minister Andrew Little said today... More>>

ALSO:



Government: Mandatory Vaccination For Two Workforces

Large parts of two workforces critical to preventing the spread of COVID-19 will be required to be vaccinated, COVID-19 Response Minister Chris Hipkins said today. “Our education and health and disability workforces have done an incredible job throughout this pandemic to keep themselves and people safe,” Chris Hipkins said.... More>>


Green Party: Deeply Concerned Space Launches May Be Breaching Nuclear-free Laws

The Green Party is deeply concerned that space launches by Rocket Lab may be breaching nuclear-free laws, given our long-standing position as a signatory of the Nuclear Non-Proliferation Treaty... More>>



Children's Commissioner: Call For Mandatory Vaccination Of Children’s Workforce
The Children’s Commissioner and Assistant Māori Commissioner are calling for a plan for the mandatory vaccination of teachers and the entire children’s workforce in New Zealand... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels