18 April 2008 Media Statement
New Zealanders deserve honesty on the economy
The global challenges affecting New Zealand’s economy deserve serious and honest talk from political leaders and
commentators, Finance Minister Michael Cullen said today.
ACT Founder Roger Douglas has today echoed the National Party’s call to blame government policy for the decision to move
hundreds of Fisher and Paykel jobs to low-wage economies.
“I’ve been saying since late last year that we all need to realise the full scale of the challenges facing our economy,”
Dr Cullen said. “We have experienced the longest period of growth since World War II and we have the lowest unemployment
rate ever recorded, but the reality is our challenges are serious.
“Household budgets are under pressure due to rising food and petrol prices just when the fallout from the subprime
mortgage crisis in the United States is pushing up mortgage rates. The weakness of the US dollar continues to put
pressure on exporters and drought has hurt a number of our farmers.
“These pressures are not unique to New Zealand, but New Zealanders deserve an honest discussion from their political
leaders on them.
“This especially applies to those workers who have lost their jobs this week. These workers do not need politicians
scrambling to attach a difficult situation to whatever political point suits their needs.
“For a start, they do not need to be told that if our productivity growth was in line with Australia or our monetary
policy more like that of the United States that they would be keeping their jobs. The Fisher and Paykel employees in
Brisbane and California who have also lost their jobs would find that argument very interesting to say the least.
“Next month’s Budget will outline a real response to the situation facing households and a real plan for a strong
economy into the future.”
ENDS