The 35 per cent fall in milk prices since February shows New Zealand needs an Economic Upgrade to limit its overreliance on the dairy industry, Labour’s Finance spokesperson David Parker says.
“New Zealand is too reliant on one industry – recent falls in the milk price shows our vulnerability.
“With many other countries increasing milk production, Bloomberg is warning of a ‘global milk glut’ lasting for five years. This further emphasises the risk the current Government is taking in allowing our export base to narrow.
“New Zealand needs a more diverse economy with dynamic industries such as ICT, wood processing and manufacturing contributing to growth alongside dairy.
“Labour’s Economic Upgrade will focus on investment, innovation and industry to grow and diversify our economy and create better jobs that pay higher wages
“We will boost our investment pool through universal KiwiSaver, direct that money to productive businesses and industries through our capital gains tax, increase innovation through research and development tax credits and tax deferrals, and provide targeted support to industries,” David Parker says.