Fonterra’s latest cut to its forecast farmgate payout confirms that an economic black hole of $7 billion is opening up that will seriously affect the regions, says Labour’s Finance spokesperson Grant Robertson.
“The cut confirms the long term trend of a fall in global milk prices due to an upcoming international supply glut set to last five years. With global milk prices slashed in half since the February 2014 peak, there is little doubt the forecast cash payout will fall too.
National’s housing crisis is causing even further damage with the second consecutive quarter of deflation a genuine concern the Reserve Bank can do little about, as it focusses on Auckland house prices, says Labour’s Finance spokesperson Grant Robertson.
“This is a double blow for New Zealand businesses. Prices for their products at home are falling and our dollar is overinflated due to high interest rates, making product prices high and uncompetitive for exporting.
Global milk prices have halved since the peak last year, creating an economic black hole of almost $7 billion that will suck in regions reliant on dairy, crucial industries and the Government’s books, says Labour’s Finance Spokesperson Grant Robertson.
“The economic black hole from the fall in milk prices is getting bigger and bigger. Since the February 2014 peak, prices have fallen 51 per cent. That will see a large fall in the Fonterra milk payout to farmers.
John Key’s attempt to redefine his cornerstone promise of two election campaigns as an artificial target suggests his other promises are works of fiction, says Labour’s Finance spokesperson Grant Robertson.
“For seven years and two election campaigns, John Key has promised a surplus this year. Never was it mentioned that it was an ‘artificial target’. In fact several times in the last election campaign he said the books were already in surplus.
Bill English is set to break his promise to get the books back in the black this year and lose the trust of Kiwis who have had to do it too hard for too long, says Labour’s Finance spokesperson Grant Robertson.
“John Key has spent seven years and two election campaigns telling New Zealanders to trust him, be patient and that he will deliver a surplus this year. But eight months into the financial year the books are over $260 million still in the red. That’s not good enough.
Businesses trying to innovate and create better products are being let down by this Government with an industry expert saying Steven Joyce’s mini-tax credits will have almost no impact, says Labour’s Finance spokesperson Grant Robertson.
“Andrew Dickeson, director of taxation services at Staples Rodway said: ‘I think people will be slow to change their approach to R&D based on this’.
The Kiwi dollar’s near-parity with the Australian means some tourists will have cheaper Gold Coast holidays but New Zealand incomes will stay lower for longer, making it harder for many to afford the trip, says Labour’s Finance spokesperson Grant Robertson.
“New Zealanders want to earn more. To do that we need to sell quality products for good prices overseas. A Kiwi dollar equal to the Aussie – our biggest trading partner – holds our exporters and incomes back.
Labour’s Finance spokesperson and Chair of the Future of Work Commission Grant Robertson has announced the membership of the External Reference Group which will guide the Commission’s work over the next two years.
“The External Reference Group brings a wide range of knowledge and experience to this important project. We have people from business, union, academic and community backgrounds, all of whom bring specialist skills that will provide expertise to ensure the Commission meets its goals.
Finance Minister Bill English is set to break another promise to New Zealand workers, talking down the prospect of decent wage increases for workers in an interview today, Labour’s Finance spokesperson Grant Robertson says.
“National campaigned on the promise of average wage increases of more than $6000 in this term of government. In an interview on TVNZ’s Q and A show today Bill English poured cold water on that, saying that was part of a ‘political debate’.