Don Brash National Finance Spokesman

25 June 2003

Growth forecast proves Government lacks vision

National's Finance spokesman, Don Brash, says BERL's attack on the Government's economic management is what National has known for months - Labour is bereft of any vision for growth.

"BERL is a recognised forecasting house and its claim that 'economic mismanagement has choked out a perfectly sound period of growth' should sound a serious warning to Michael Cullen," says Dr Brash.

"National told the Government months ago it was squandering its great opportunities. Labour was reaping the benefits of a buoyant couple of years, with high commodity prices, low interest rates, a weak exchange rate and good growing weather on the farm.

"We warned the good times wouldn't last - and Michael Cullen knew it," says Dr Brash.

"But instead of investing in any ideas to boost the country's long-term growth prospects, the Government has taken a sledgehammer to the business sector with a whole raft of anti-growth legislation.

"It therefore comes as no surprise that BERL forecasters are asking 'where is the vision?' and warning that the country's economy is in for a rough ride.

"The Government's already abandoned its earlier goal of lifting New Zealand's living standards back into the top half of the OECD within a decade. With current policies, we know it doesn't have a dog's chance of achieving that objective.

"Clearly, a growing number of economic forecasters and commentators agree," says Dr Brash.

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