Exports in free fall - real plan required

National’s failed export policy threatens New Zealand’s future, says Labour’s Economic Development spokesperson David Cunliffe.

Statistics New Zealand figures released today show New Zealand’s exports are in free fall, with a huge 6% drop in merchandise exports in the March 2012 quarter.  The decrease was led by falls in milk powder, butter and cheese prices; oil; and fruit produce.

“Exports have been on a downwards spiral for half a year. The trend can’t be sustained.

“National is now in its second term, yet it still hasn’t come up with a single credible plan to get our economy growing. The main thing John Key seems interested in exporting is our state-owned enterprises.

“Hanging the success of the country’s future outlook almost entirely on produce and mineral exports echoes every failed economic policy of the last 30 years.

“The National government talks repeatedly about the need to sell assets because we have so little money in this country.

“Why there is so little money is because a large percentage of our economic assets are overseas-owned, including many major exporters and more and more farms.

“That money isn’t returned to New Zealanders. It goes straight back overseas.

“The main thing John Key seems interested in exporting is our state-owned enterprises. What he should be doing is looking at alternative ways of building the economy,” David Cunliffe said.

“New Zealand needs to start supporting its local economy and its local businesses. We could be world leaders in alternative energy and fields such as software development.

“My message to National is simple: Wake up. The failed economic experiment of the last three decades is over. We have to change the way we run our economy, or face serfdom,” David Cunliffe said.