Credit report proves English is out of touch

Latest statistics from the country's largest credit bureau --- showing a massive hike in the number of Kiwis who can’t pay their bills and 50 percent of trading companies with outstanding debts --- proves how out of touch Bill English is when he says Kiwis are better off under National, says Labour Finance spokesperson David Cunliffe.

“Veda Advantage’s report is a huge wake-up call,” David Cunliffe said.

“The reason New Zealanders are spending less is not because they are saving --- it’s because they can’t afford to pay the bills they already have.

“According to Veda, about half the country’s trading companies --- 336,716 --- have outstanding debt, with more than $12 million overdue by 90 to 120 days. Veda says these debts are likely to be written off, with a severe impact on creditors and ultimately a further negative impact on business and the wider economy.”

David Cunliffe said the statistics provided more evidence that the economy had stalled under National.

“The NZIER Survey of Business Opinion on 5 October showed the New Zealand economy in reverse, with a collapse of business activity, and followed a day after Berl’s report that warned of risks of a double dip recession.

“The Veda report helps explain why business turnover is down, businesses are not hiring, and businesses are not investing,” David Cunliffe said

"Just as alarmingly, tens of thousands of New Zealanders are finding they just can't pay their bills.

“As Veda says, these Kiwis are going into arrears and then finding their credit record is affected as defaults stay on credit reports for five years.

“For Bill English to say Kiwis are better off under National represents the ultimate in cynicism,” David Cunliffe said.

“It’s a bit rich for Bill English to claim credit for ‘controlling’ inflation when he has presided over the deepest recession in many years, and failed to provide a plan to lead us out of it.

ENDS

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