Cooling economy heats unemployment
Today’s increase in unemployment is proof that the economic tail wind the Government has enjoyed for the last three
years is slowing down, says National’s Finance spokesman, Don Brash.
“This Government has enjoyed the benefit of high commodity prices, good growing weather down on the farm, and a weak
exchange rate, but it knew it would not last. The Finance Minister has even indicated this himself, with the concerns he
expressed this week about the rising exchange rate.
“His concerns are a bit rich considering it is his Government that is forcing measures such as new OSH and Local
Government legislation and Kyoto ratification onto the business community.
“What Dr Cullen should be doing is directing his energy towards those things he can do something about, like the tax
burden and the regulatory environment.
“The Government is trying to put a positive spin on today’s HLFS figures by putting the result down to “brain stay”. The
reality is, people will only continue to stay in, or be attracted back to, New Zealand if the economy is vibrant, with
strong employment prospects,” said Dr Brash.