25 June 2002

"Today's release of the Pre-election Economic and Fiscal Update (PREFU) shows the real reason why Helen Clark decided to call a snap election," says National's Finance spokesman David Carter.

Mr Carter says Treasury forecasts show the economy has peaked and will soon show signs of weakening and that is why Labour has gone to the polls four months early.

"The biggest change since the Budget forecasts has been the rise in the value of the New Zealand dollar. But other economic factors are also deteriorating.

"On the back of our strengthening dollar, export growth is down - leading to lower GDP growth and a worsening in the balance of payments."

Mr Carter says the latest PREFU forecasts reveal that the Government has run of luck and ideas.

"By the end of the year, it will be apparent that Labour has done nothing to lift New Zealand's sustainable rate of growth and our long-term economic prospects.

"It's clear that under Labour we will never see growth rates of 4 per cent and that it has no strategy of lifting us back up the OECD rankings," Mr Carter added.

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