15 December 2009
Media Statement

Kiwis deserve to share in stronger recovery

Better-than-expected economic forecasts should be reflected in a Budget in 2010 that allows all New Zealanders to share as much as possible in the recovery, says Labour Finance spokesperson David Cunliffe.

David Cunliffe says today’s Budget Policy Statement is significantly more pessimistic than the latest Reserve Bank’s prediction.

“The Government is still trying to play down the extent of the recovery, but whether you use Reserve Bank or Treasury forecasts, it is clear that hard-working Kiwis, who have been struggling to make ends meet throughout the recession, must be to the fore of the Government’s priorities in next year’s Budget.

“Kiwis who have lost their jobs, or had their hours of work reduced, or had their pay frozen while the cost of living has gone up, need to feel they are going to be part of the better times ahead.”

David Cunliffe said that improved forecasts for real GDP growth and of deficits now likely to peak at 3.4 percent of GDP in 2010/11 instead of 5.4 percent both underlined a brighter picture for the New Zealand economy.

“The recovery is still patchy, of course, and there are still many challenges ahead, but Kiwis can justifiably expect Budget 2010 to chart a planned and sustainable way forward for New Zealand that provides fairness across the board.

“The fact that Finance Minister Bill English is trying to play down the level of recovery is a worrying sign, but Kiwis want positive reinforcement that the country is on the mend. The Government cannot claim much credit for that --- we have been helped considerably by strong performances from our trading partners --- but we now need to keep the recovery going.

“Building a strong and sustainable future for New Zealand means appropriate investment in research and development, innovation and skills.

“These are the real drivers of improved productivity, and the real recipe for a recovery that brings all Kiwis along.”

ENDS

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