New Zealand Labour Party

Milk price plunge creates $6b economic black hole

The plunge in Fonterra’s forecast dairy payout to a seven-year low for farmers will create a $6 billion economic black hole, showing yet again that National’s failure to diversify is hurting the economy, Labour’s Finance spokesperson Grant Robertson says.

“The fall in the forecast dairy payout means there will be $6 billion less than expected to go into the economy.

“Not only does this mean less consumer spending and stunted growth, it also puts the Government’s golden surplus target at risk.

"New Zealand is far too reliant on the dairy industry. Instead of fixing that and growing other sectors, Steven Joyce and Bill English are even more obsessed than ever with their milky way. They have made a mockery of their promise to rebalance the economy.

“New Zealand needs a modern, diverse economy that creates well-paying jobs across all industries. Under this Government all we are seeing is more reliance on dairy and a stuttering economy as a result,” Grant Robertson says.