2012 Budget a failure for exporters

John Key is in complete denial about the structural imbalance the New Zealand economy faces, says Labour’s Finance spokesperson David Parker.

“Just this week he claimed that ‘under a National Government, exports are rising’. Yet according to Statistics New Zealand, exports of goods fell 17 per cent in the last 12 months.

“Budget 2012 shows this is only going to get worse with imports increasing at much faster rates than exports over the next four years.

“This will blow out the Current Account deficit to -6.7 per cent of GDP and New Zealand’s net international liabilities will be a record $205 billion in 2016.

“That’s well over $120,000 in overseas borrowing for every household in New Zealand.

“This is not sustainable,” David Parker said.

“Just this morning Standard and Poor’s said failing to address this could result in a lower rating. It’s one the major reasons for the double-downgrade last year that the Government has simply put in the too-hard-basket.

“We have to tackle the tough issues holding back the economy. National’s only plan is to sell our assets. Changing who owns what already exists does nothing to grow our exports.

“The Government’s unwillingness to tackle serious issues like pro-growth tax reform, increased savings and the age of eligibility for superannuation, is why it has to cut the number of teachers and tax paperboys and girls.

“Labour is committed to providing economic leadership that makes the tough calls for the long-term benefit of New Zealand.

“We’ll grow exports and create jobs through increased savings and pro-growth tax reform that shifts investment away from the speculative economy towards the productive sector,” David Parker said.