Missed Opportunities, Not Enough For Jobs

There is very little new in the Prime Minister’s statement on economic growth and what he announces misses significant opportunities to boost jobs and broaden the tax system, said CTU Economist Bill Rosenberg.

“The Prime Minister glosses over the steep rise in unemployment revealed just last week, and his statement does precious little for those out of a job or whose jobs are at risk,” said Rosenberg. “The recession is not over for many New Zealanders. Instead he threatens making it harder to access the unemployment benefits for those unfortunate enough to be out of a job for any length of time. The signalled reforms on this and other benefits are a worry given National’s record on benefit cuts. Creating jobs will get people off benefits but there is not enough on this in the speech.”

“The Prime Minister signals an increase in GST to 15 percent and continued tax cuts for the well off. This will only further encourage the development of the ‘emerging underclass’ he speaks about. The priority should be to reduce inequality, not increase it.”

“The Tax Working Group put asset taxes on the agenda, but the government appears to have wiped them off just as quickly. We need a Capital Gains Tax or other form of property tax (excluding the primary home) to broaden the tax base and level the playing field on investment. It is good that the government is still looking at options for changing the way property is taxed – probably looking at depreciation and write-off of losses - but it has missed an opportunity to make significant changes in our tax structure.”

“The Prime Minister again hits at workers through changes to the labour laws, undermining holiday entitlements and fair treatment of Personal Grievances. We won’t get closer to Australia by attacking employment conditions. Labour laws did not cause the recession and they will not hold back any recovery.”

“A further positive approach would be to include unions in industry development initiatives and in improving health and other public services, recognising the contribution workers make to economic development.”

ENDS

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