New Zealand economy in freefall while the Government’s books burn

Responding to today’s release of the third quarter GDP figures by Statistics New Zealand, Taxpayers’ Union Policy and Public Affairs Manager, James Ross said that “New Zealand’s back in recession after a second quarter of negative growth, but with the economy shrinking by 1% in just a single quarter the scale of the damage is shocking.

“Reserve Bank Governor Orr has almost throttled the life out of the economy with his earlier far too aggressive monetary tightening. He has now been forced into an aggressive loosening of monetary conditions, but it looks too little too late.”

“Tuesday’s release of Treasury’s Half-Year Economic and Fiscal Update should’ve been the wake-up call that the country’s in real trouble. The forecasts show the Government has lost control of it’s spending, spending growth is well outpacing revenue growth making a balanced budget impossible.  Finance Minister Willis’ claim of a surplus in 2028/29 is a mirage conjured up by deleting those pesky ACC deficits.”

“The Government needs to take its spending problem seriously to balance the books. Sir Bill English made the hard choices to get back to surplus after the Global Financial Crisis and this Government needs to do the same. Continuing to fiddle whilst the books burn is not a fiscal strategy - Willis missing her targets has the country on course for disaster.”

“Can someone please wake the Government up?”