No encore for the ‘Rock Star’ economy?

Another significant shortfall in the Government’s books suggests the economic recovery may have already passed most New Zealanders by, Labour’ Finance spokesperson David Parker says.

“With unemployment still high, wage rates stagnating and inequality widening, only the lucky few are benefiting from National’s much-hyped ‘rock star’ economy.

“The potentially weaker recovery was today reinforced by plunging business confidence recorded in NZIER’s Quarterly Survey of Business Opinion. Fewer businesses expect the economy to improve in the next six months, yet 93 per cent expect interest rates to keep rising and the consensus opinion is that inflation will hit 2.5 per cent by the end of 2014.

“As disaster recovery concludes and dairy prices recede from historic highs, National’s lack of vision and foresight to increase jobs and wages is being exposed; and New Zealanders are bearing the economic brunt of it.

“Six years after the global financial crisis, New Zealand’s 6 per cent unemployment rate is now almost as high as the 6.1 per cent recorded in the United States. This is more evidence that reliance on dairying, held up by record commodity prices, and the Christchurch rebuild are shaky foundations for an economy that needs to be much more diverse.

“Compared to May’s Treasury forecasts, the Government’s OBEGAL deficit is $332 million worse than forecast largely due to core tax revenue including GST, income tax and corporate tax receipts being $459 million below forecast.

“That shows that despite the Government’s puffery, Kiwi families are yet to see the benefits.

“With the end of the golden weather looking imminent, New Zealanders need a Government with a plan and a vision to deliver better jobs and higher wages for all.

“Only Labour has a plan to deliver an economy that works for all Kiwis,” David Parker says.