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Economists’ warnings show need for Economic Upgrade

Published: Tue 26 Aug 2014 12:46 PM
Economists’ warnings show need for Economic Upgrade
Warnings from senior economists back up Labour’s concerns our economy is too reliant on the Canterbury rebuild and Auckland’s housing market, which is a combination that could see the economy end up ‘on the rocks’, Labour Leader David Cunliffe says.
“Labour has been clear with New Zealanders that National’s overreliance on dairy and disaster is not a real recovery and is in fact hurting other sectors and limiting export growth.
“New Zealand needs a diverse and vibrant economy, not one that relies on rebuilding Christchurch, the price of milk in China and puts money in the hands of Auckland property speculators.
“The recent dramatic falls in dairy and wood prices shows the failings of National’s policy and the resulting halving in growth. New Zealanders are missing out on the recovery with less than half getting a pay rise last year.
“Export figures out today showed a monthly drop of 7.5 per cent, led by the fall in dairy and raw log exports.
“This is why New Zealand needs Labour’s Economic Upgrade that focusses on investment, innovation and industry to diversify our economy, boost exports and create better jobs with higher wages.
“We will increase investment through universal KiwiSaver and use a capital gains tax – excluding the family home – to direct it to productive businesses and jobs.
“We will boost innovation through research and development tax credits and tax incentives to encourage investment in new technology.
“We will support crucial industries through upgrade plans for sectors such as forestry, manufacturing and ICT.
“That’s the only way we can ensure long-term growth and a better economy for all New Zealand.
“It’s not just Labour and senior economists who are concerned about our economy’s future. New Zealanders are increasingly worried that this is as good as it gets,” David Cunliffe said.
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