New Zealand Labour Party

Govt books confirm National can’t post surplus

The last publication of the Government’s books before the budget shows National will break its promise of seven years and two election campaigns and fail to get the books in order, says Labour’s Finance Spokesperson Grant Robertson.

“The Government is set to fail its own test and miss surplus for 2014/15 - a target it staked its economic credibility on.

“According to these forecasts and with the ongoing fall in dairy prices, next year’s surplus is in jeopardy too. That would make this the first Government since Muldoon to post eight deficits in a row.

“It is remarkable that, with over three per cent growth, National cannot post a surplus and has unemployment at almost six per cent. In 2006 when growth was over three per cent, Labour ran a surplus of $7 billion and the jobless rate was 3.7 per cent.

“Clearly National has got the economic structure wrong. Too many Kiwis are missing out on jobs and opportunities. When that happens, less tax is collected and it becomes a struggle to make surplus.

“New Zealanders will be hoping this Government has some new and better policies in this Budget to turns things around.

“But that’s incredibly unlikely. National has a deficit of money and a deficit of ideas.

“It’s time National came up with a better plan for boosting business and creating jobs to generate the revenue the country needs to get back in the black,” Grant Robertson says.