Another plunge in the price of milk powder overnight will be part of a $6 billion blow to the economy – showing the risk of putting all New Zealand's eggs in the dairy basket, Labour's Economic Development Spokesperson, David Clark.
“The Government’s obsession with the dairy industry is beginning to backfire and it’s hurting all New Zealanders. Things are looking increasingly dire for the sector.
“Dairy has a strong part to play in the New Zealand economy but with milk prices almost halving this year it shows we can’t treat it as our only cash cow.
“The economy clearly needs rebalancing and Steven Joyce has demonstrated at every turn that he is not up for the job.
“Since the GFC ended three years ago, New Zealand has been trading in a relatively benign world trading environment, but instead of reshaping the economy, Steven Joyce has been content to stand by and watch the ongoing drift.
“Without dairy income and the Canterbury rebuild, New Zealand’s outlook would be worse. The Government cannot continue to use these two sectors as a crutch.
“High interest rates, a problematic housing market, overexposure to China and an over-reliance on foreign capital, are other symptoms of the government's failure to diversify New Zealand’s economy,” David Clark says.