Nothing in budget tackles two-speed economy

The budget does nothing to tackle the two-speed economy that National is creating, says Labour’s Finance spokesperson David Parker.

“National’s two-speed economy is creating winners and losers. The winners are a few well, connected elites. The losers are the rest of us.

“We have two economic speeds, where exporters and manufacturers struggle, while speculators flourish.

“We have two speeds in a fairness sense, with incomes and wealth ever more concentrated in the hands of the few.

“We have two speeds geographically, with many regions stagnant.

“We have two speeds age-wise, with younger New Zealanders still locked out of home ownership, and many of them facing a future of low paid or casual jobs.

“And two Auckland speeds, where growth is in rampant house prices not production and jobs.

“Today’s over-hyped budget shows how timid this Government is. They are too scared to make the changes needed. As a result our current account deficit – dangerously high at $10 billion a year – will get worse every year until 2017.

“Nothing will be done to tackle our overvalued exchange rate. Nothing will be done to increase our national investment pool. Nothing will be done to stem the flow of investment in property speculation that comes at the cost of productive exporting industries.

“In two years spending on superannuation will cost more than putting our kids through school and university. That’s wrong. National’s refusal to address the retirement age is hurting our next generation.

“Nothing will stop New Zealanders fleeing this country at 1,000 a week.

“Squeaking into surplus by 2014/15 is not enough. Labour would have achieved that as well but also make the important changes needed to get our whole economy into high gear.

“By making KiwiSaver universal we will increase the investment pool. Our capital gains tax will direct that investment away from property speculation and into productive businesses. Our reform of monetary policy will tackle the high exchange rate and allow our exporters to succeed.

“This National Government has only run deficits. The last Labour Government ran nine surpluses out of nine budgets.

“Without making the big, important changes to our economy, it will continue to run at two-speeds, with most of us stuck in the slow lane,” says David Parker.
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