MANA: Gov delusional on how credit downgrade impact the poor

MANA MEDIA RELEASE

FOR IMMEDIATE RELEASE

4 October 2011

Reference: www.stuff.co.nz/national/politics/5726510/English-concedes-downgrade-impact

MANA says Government delusional on how credit downgrade will impact the poor

MANA Party Economic spokesperson, John Minto says last week’s credit downgrade will have an impact on the poor well beyond what the Government pretends.

"Last week the Prime Minister was boasting about how well he had handled the economy, by Friday the country's credit was downgraded.

“Then over the weekend the Government claimed that the downgrade wouldn't impact on interest rates while yesterday the Finance Minister admitted that it would.

“There are only two possible conclusions to be drawn from this – either the Government is unbelievably naïve with a gross misunderstanding of how financial markets work or they just want to hood-wink the people by continuing to put on a face that all is well when it is obviously not.

“Either way they simply should not be in charge of managing the country. And Labour – which still follows similar economic policies that are behind the downgrade – has no right to claim a better management record.

Mr Minto says however one reads it this Government is delusional about what they have done to the economy.

“ They have made rich New Zealanders richer by borrowing for tax cuts while the rest of us have to pay for the financial meltdown. That’s unsustainable.

“ The Reserve Bank warned yesterday that there was a ‘real risk that global economic activity could slow sharply’, while a super slump is now forecast for our largest trading partner, Australia.”

“Mana is representing the interests of Maori, low wage earners and beneficiaries and we are proposing the Hone Heke Financial Transaction Tax which is now supported by countries across Europe as the only way to get their economies out of the mire. It is also the best way for New Zealand to stabilize our economy and future proof Government revenue.

Mr Minto says instead the government's focus is on their wealthy friends rather than ordinary New Zealanders who are paying the price of the stupidity and greed which led to the financial crisis.

ENDS