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Treasury’s downside scenario becoming reality

Treasury issued several warnings to the Government over plunging dairy prices – but John Key ignored them and continued to publicly downplay those concerns, Labour’s Finance spokesperson Grant Robertson says.

“Treasury have sent several warning notes to the Government since June that falling milk prices meant its Budget downside economic scenario was turning into reality.

“The downside scenario is something the Government should do everything to avoid and results in very weak growth, stagnant wages and high unemployment along with Budget deficits in 2016 and 2017.

“While the Government was receiving these warnings John Key’s only warning was to media and opposition politicians to ‘stop talking the economy down’.

“National has been recklessly complacent in the face of falling dairy prices. Now it’s clear they knew the extent of the problems that the economy faces but they are still downplaying it.

“National needs to front up to New Zealanders about the warnings they are receiving,” Grant Robertson says.