INDEPENDENT NEWS

National set to drive us deeper into recession

Published: Mon 4 Apr 2011 02:14 PM
National set to drive us deeper into recession
Labour’s Finance spokesperson David Cunliffe says the government accounts released today make it even clearer that National will use the economic impact of the Christchurch earthquakes to justify savage cuts to public spending in this year’s budget.
“With the Earthquake Commission estimating the net cost of the quake at $1.5 billion, National believes it has found its excuse to further its own ideological priorities, and produce a zero budget that dramatically slashes services for low to middle-income Kiwis,” David Cunliffe said.
“All that will do is to drive New Zealand even deeper into recession.
“Labour recognises the financial impact of the quake, but we need a balanced package in response,” David Cunliffe said.
“We need to borrow to smooth the cost over the time it takes to complete the recovery, we need to reprioritise projects such as the holiday highway north of Puhoi, we need to back off some of the tax cuts to wealthy Kiwis who didn’t need them in the first place, and we need a real plan for growing the economy and jobs.
“The Government has had no such plan for the past two-and-a-half years and is no closer to developing one now,” David Cunliffe said.
“Sadly, the New Zealand economy is going nowhere other than backward under this Government. The economy was significantly weaker than expected just two months ago --- before the earthquake. Two-thirds of the expected $15 billion loss of production over the next four years is due to the Government's mismanagement of the economy:
“John Key promised us most Kiwis would be better off under National. What he should have said is that wealthy Kiwis will be better off, because low and middle-income Kiwis are struggling.
“The real irony about National’s mismanagement of the New Zealand economy is that we would be in even worse shape if it wasn’t for the strong financial gains from the Super Fund and ACC, the very institutions that National still apparently believes it is smart to cripple,” David Cunliffe said.
ends

Next in New Zealand politics

Gordon Campbell on a new book on the leaky homes scandal
By: Gordon Campbell
Review finds NZTA road safety regulation failings
By: RNZ
Climate Change Commission Chair-designate announced
By: New Zealand Government
Government putting right Holidays Act underpayment in Health
By: New Zealand Government
Police should not have pursued youths on Auckland motorway
By: Independent Police Conduct Authority
Locked-in care is a ‘hard place to be happy’
By: Office of the Children's Commissioner
Campaigner welcomes removal of racist refugee restrictions
By: Murdoch Stephens
Sroubek report confirms Minister made wrong decision
By: New Zealand National Party
NZTA to refocus on safety following review
By: New Zealand Government
NZTA to adopt "safety first"?
By: Movement
NZ roads will never cope with heavier trucks
By: Citizens Environmental Advocacy Centre
National Party open to higher methane targets
By: BusinessDesk
NZ to go Dutch to battle climate change
By: BusinessDesk
Small end of town needs to chip in on climate change - Carr
By: BusinessDesk
Carr named to chair Climate Change Commission
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media