Despite the Reserve Bank highlighting the need for higher levels of capital expenditure to stimulate the economy, the Government is going to do the exact opposite, Labour’s Finance spokesperson Grant Robertson says.
“Bill English has signalled a Budget money-go-round that fails to meet the need for investment to grow the economy. He plans to cut funding for capital projects now, just as the call for investment grows.
“Labour believes the Government should be investing in much-needed essential Auckland infrastructure such as housing and transport, and support the regions to develop high value industries and decent work.
“Bill English confirmed in Parliament that his statement today about ‘reprioritising within the Crown’s large balance sheet’ means flogging off more assets including state houses. This is irresponsible. New Zealand needs more social housing not less.
“The Government has refused to meet its debt reduction targets for the past few Budgets. There is little to suggest that will change, and even less to suggest it understands the importance of long term investment in our economy to deliver a fair share to all New Zealanders,” Grant Robertson says.