Growth disappoints as Government picks the paper boy's pocket

Growth forecasts have been cut, there will be 16,000 fewer jobs and the overseas debt  increases every year in Budget promises announced today, says Labour’s Finance Spokesperson David Parker.

“The Budget shows we get poorer every year because the value of exports don’t cover imports and interest.

“Every year the external deficit gets worse. This is filled by more borrowing from overseas and asset sales to foreigners. For the first time ever, our net liabilities to the world will be more than $200 billion – 80% of GDP.

“The budget picks the pockets of paper boys but has far too little in it to grow the economy – especially exports.

“After three years of the worst growth in 50 years, the National Government keeps doing the same thing but expects different results.

“Every year the government promises higher growth in the future and every year it fails. This year is no different. In Budget 2011, Bill English promised 4% growth this year. That’s been scaled back by 1% and export growth is derisory every year.

“Real wage growth peaks at 1.6% and declines. No wonder the Budget forecasts that the record levels of people will continue to leave for Australia next year.

“Jobs are not being created at the rate we need and Kiwis are heading to Australia in record numbers because National isn’t making the tough choices New Zealand needs,” said David Parker.