Taxpayers' Union Chair, Former MoF Calls for Spring Statement to Reset Government's 'Go for Growth' Plan

In light of yesterday's alarming GDP figures and the failure of the Government's current fiscal and economic approach, the Taxpayers' Union is calling on Nicola Willis to present a 'Spring Statement' to decidedly reset the economy on a growth path before this year's Half Year Economic and Fiscal Update.

"Two years into the Government's economic agenda, it is clear the current plan is failing and it's time for a bold change in direction," said Hon Ruth Richardson, the Chair of the Taxpayers' Union.

"The first thing the Government needs to do to deliver growth is get Big Government's foot off the throat of the economy. Despite running on a platform of cutting the last government's bloated spending, Nicola Willis has actually increased government spending as a proportion of the economy. She is perpetuating high levels of deficit and debt, which are dragging the economy down."

"Nicola Willis tried to portray her approach favourably in opposition to my 'short and sharp' approach when I faced similar fiscal challenges in the early 1990s. That approach set the scene for a growth rate of 5 percent - it's better to be short and sharp than this long, painful torture of continuing the last government's fiscal recklessness. Yesterday's numbers are vindication of my high-growth choice."

"New Zealanders cannot afford to stick with failing policies. A course correction is urgently needed. The best way to do it is a Spring Statement to correct the fiscal path, get spending under control and give the private sector room to grow again.”

“The Government must stop pretending that the current approach will work.  The attacks on me and others who are pointing out the fiscal elephants in the room do Ms Willis, and all New Zealanders, a disservice. Moving government spending back to, say, the levels of Ardern's 'wellbeing budget' isn't 'slash and burn', it's responsible and necessary."

"Treasury are making clear that the situation is getting worse, not better.  The Government says they are on a path to 'surplus', but it's spin over substance. The amount being borrowed per day now is higher than when the Government entered office.”

“It’s time for a hard reset, a shift in priorities towards fiscal responsibility and economic stability.”

“The longer we wait, the deeper the hole.  A Spring Statement is necessary.”