Labour's forward thinking gave NZ a solid foundation

The fiscal responsibility of the last Labour government has allowed New Zealand to support countries afflicted by economic crisis, rather than being forced to ask cap in hand for assistance itself, says Labour’s Finance spokesperson David Parker.

“New Zealand’s contribution to the IMF-led bailout of Portugal is appropriate and in line with the responsibilities we share as part of a global community. However, it does provide a salutary opportunity to reflect on our current position,” David Parker said.

“John Key’s rhetoric in Parliament this week suggesting Labour mismanaged the economy and left National in debt, is pure fiction.

“To say that National inherited 10 years of deficits from the Labour Government, as the Prime Minister did yesterday, is simply another line in his comedy routine.

“When National took office government finances were sound.

“Under the fiscal prudence of Dr Michael Cullen, Labour ran large surpluses over nine years, leaving the incoming National government the security it needed to chart New Zealand through the economic downturn.

“The fact is by the time Labour left office New Zealand had nil net government debt and one of the lowest gross government debts in the developed world.

“Bill English himself admitted in 2008 that the economic downturn was ‘the rainy day that Government has been saving up for’.

“While the Eurozone is in crisis, and leaders internationally grapple with the fallout for their own citizens, New Zealand, thanks to the forward-thinking of the last Labour Government, is better positioned,” David Parker said.