New Zealand’s growth per person is significantly lower than countries like the UK and America, showing our economy is driven by population growth rather than productivity, says Labour’s Finance spokesperson Grant Robertson.
“Along with flat per person growth, we have seen a fall in per capita real incomes. This means on average Kiwis are getting poorer. That’s because the key driver is population growth, not new businesses, industries and exports which is what’s needed to boost growth per person.
Fonterra’s profit announcement today offers little relief for struggling farmers who will still be forced to borrow billions more from the banks to keep afloat, Labour’s Economic Development spokesperson David Clark says.
“A quarter of our farmers could still go out of business and there are 100,000 small businesses suffering the effects of the diary downturn.
If John Key is not prepared to act on his view that multinationals not paying tax is ethically wrong, but not legally wrong his moral compass has gone missing says Labour’s finance spokesperson, Grant Robertson.
“The Prime Minister has admitted twice on television this weekend that the multinational tax avoidance is ethically wrong, but at the same time he says it is within the law.
Figures in the New Zealand Herald raise serious concerns about the amount of tax paid by offshore corporations and should see action by the Government, says Labour’s Finance spokesperson Grant Robertson.
“Most commentators agree some large corporations are avoiding paying tax and acknowledge it is a widespread global issue. Other countries such as the United Kingdom and Australia have held inquiries that have revealed highly dubious practices in some cases.
The latest drop in the dairy price shows a rebound is not coming soon and the Government needs get moving on diversification, says Labour’s Finance spokesperson Grant Robertson.
“The latest fall in global dairy trade auction is a further clarion call for diversification of the economy. National’s claim the price drop will have a limited fallout ignores yesterday’s MYOB Business Monitor showing that over a fifth of small businesses have been affected.
With a fifth of small businesses hit by the fall in the dairy price it’s time the Government stopped being so complacent about the effects on the economy, says Labour’s Small Business spokesperson Jacinda Ardern.
“MYOB’s latest Business Monitor shows 21 per cent of SMEs are feeling the effects of the fall in dairy prices. In rural areas this is 34 per cent but even Auckland and Christchurch are feeling the effects.
The OCR cut today shows National needs to step up and support the Reserve Bank to ensure the country is able to handle ‘the increasing risks to the economy’, says Labour’s Finance spokesperson Grant Robertson.
“The cut to the OCR shows the economy is in need of stimulus, with growing concerns about dairy, the international economy, and the housing market. Current growth is being driven by short-term, non-sustainable factors like migration. As the Reserve Bank said, ‘Growth per person hasn’t been as strong as it might have been’. In fact it has been close to zero over the last year.
National’s 2010 review of the Holiday’s Act identified challenges around holiday payments but failed to fix issues within the former Labour Department, says Labour’s Economic Development spokesperson David Clark.
“In 2010 Cabinet signed off on the recommendations of a working group set up to investigate payroll problems. The Cabinet paper considered recommendations on holiday pay but Cabinet didn’t adopt them.