New figures show the shocking extent of troubles in the regions, with Southland’s GDP falling by 10 per cent, and the West Coast by five per cent in the year to March 2015, says Labour’s Economic Development spokesperson David Clark.
“The collapsing dairy prices and struggling mining and gas industries have caused serious economic problems for many regions with some going backwards as shown in today’s regional GDP figures.
Bill English has admitted the dairy industry is in the Reserve Bank’s severe scenario which could lead to almost half of dairy farmers defaulting on their loans, says Labour’s Finance spokesperson Grant Robertson.
“On Morning Report Bill English said the dairy industry is in an extreme or severe scenario, following the fall in Fonterra’s payout to below $4. In the Reserve Bank’s modelling that could lead to 44 per cent of farmers defaulting on their loans. That’s 5,000 farmers and a huge flow-on effect to their communities.
The escalating payroll scandal that threatens to effect a huge number of employees further exposes this Government’s basic management incompetence, Labour’s Economic Development spokesperson David Clark.
“This is a serious management issue from the Government. It has been in power for eight years but cannot guarantee people have been paid properly.
Fonterra’s forecast payout has more than halved in two years, creating an $8.2b hole in the economy – which must finally be a wake-up call for National, says Labour’s Finance spokesperson Grant Robertson.
“The fall in the payout means it will be approximately just $7b, a fall from $15b two years ago. This will put real pressure on rural communities and farmers that are struggling to cope with high debt levels and three seasons of a low payout.
Fonterra’s decision to extend its payment period for contractors is a blow to small businesses already struggling due to the plunging payout’s effect on farmers and rural communities, says Labour’s Small Business spokesperson Jacinda Ardern.
“It’s a tough time for small business contractors, especially those working in the rural sector. Cashflow is king for these companies so it is extremely disappointing for Fonterra to push out payment times.
The MBIE payroll debacle that could run into the millions of dollars shows how badly Steven Joyce has managed the creation of his empire, coming on top of spending scandals and strikes, says Labour’s Economic Development spokesman David Clark.
“It is a fundamental part of any organisation to be able to pay its staff properly. That the Ministry of Business cannot pay employees effectively is deeply embarrassing. This goes straight to Mr Joyce as the minister responsible.
Supporters of National’s Easter Trading Bill are pushing for more gambling, more booze and less time with family says Labour’s Workplace Relations spokesperson Iain Lees-Galloway.
“Not satisfied with stealing family time from workers on Easter Sunday, hospitality and retail sector lobbyists today told a Parliamentary select committee they want more access to pokies and more booze to be sold on that day as well.
Over 46,000 New Zealanders have missed out on employer contributions to their KiwiSaver accounts, but the Revenue Minister refuses to chase up the millions of dollars which is outstanding, says Labour’s Finance spokesperson Grant Robertson.
“KiwiSaver has been an extremely popular legacy of the last Labour Government, despite the Government gradually eroding it. Hard-working New Zealanders put their money in and expect it to be matched by their employer.
New warnings of a global recession places the spotlight on New Zealand’s $67b net debt, leaving the economy in a much worse state than before the 2008 downturn when net debt was zero, says Labour’s Finance spokesperson Grant Robertson.
“Despite claiming the figleaf of fiscal responsibility the latest government accounts show that National has racked up over $67b in net debt. With Citigroup warning of a global recession that level of debt will be an albatross around the neck of the government if the downturn occurs.