Nek minnit economics – disappointing growth means disappointing books

A lower than expected tax take is the result of a stuttering, under-performing economy that the Government has failed to grow, Labour’s Finance spokesman David Parker says.

Financial statements released today show the government took in more than $1.5 billion less than it expected when it updated its forecast pre-election.

“New Zealand needs a focus on growth. Because we’re not growing, the economy is continually underperforming.

“It’s ‘nek minnit’ economic management. Every time the government updates its forecasts it promises jam tomorrow. Nek minnit, it produces the actual results, and they look worse.

“It’s the performance, not the forecasting that’s the problem,” David Parker said.

“National has wasted money on MFAT consultancy, commissions for asset sales and a motorway to Puhoi. None of those projects will lead to improvements to wages or the economy.

“The books will limp back to surplus in two years, but the economy won’t grow and deliver better incomes because selling assets, selling farmland and selling legislation is not a growth strategy.

“To grow our economy we need to keep our assets, invest in innovation and the world’s best educational achievement, adopt export and job--friendly exchange and interest rate settings, pro-growth tax reform, and wealth-building savings policy,” David Parker said.