19 July 2002

It's The Economy, Stupid!

"Warnings from Deutsche Bank that economic growth is going to halve during the coming year is another wake-up call for voters that the golden weather is coming to an end," says National's Finance spokesman David Carter.

Mr Carter says it is obvious that Labour hasn't done a single thing to lift New Zealand's long-term, sustainable growth rate.

"For the past two years the current Government has ridden its luck on the back of low interest rates, a low dollar and high commodity prices. However, whip these factors away and all of a sudden we're back to a miserable 2% per cent growth.

"That's just not good enough and it will see New Zealand fall further behind Australia. That's the real gap we should be closing.

Mr Carter says Labour has squandered the opportunity to lock in higher growth.

"It refuses to the tackle issues that will really make a difference to our long-term economic performance - like cutting compliance costs and reducing our high tax burden. New Zealand will never get ahead with the highest corporate tax rate in the Asian region and a regulatory environment that puts up barriers to growth.

"Unlike the current Government, National has a serious and substantial plan that puts higher economic growth at the heart of our economic policy framework.

"During the election campaign Michael Cullen has continually diverted attention away from the worsening economic outlook with politically-motivated attacks against the Reserve Bank and Don Brash.

"Up until now voters may have been fooled by his diversions. However, they're becoming increasingly aware that New Zealand is headed for tougher times and only National has the policies to enhance our economic performance," Mr Carter says.

Ends

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