Media Release

Wednesday 26 October 2011

No surplus for 2015

“Is the government in denial, dreaming, or just being economical with the truth?” asked Stephnie de Ruyter, leader of the Democrats for Social Credit Party.

“Yet again the government is trying to persuade us that black is white and that pigs might fly. The budget in May was sold to us as the perfect recipe to avoid a credit down-grade: so successful was that formula that New Zealand’s credit rating was down-graded by Standard and Poors twice within a week, with a third due from Moody’s. Kiwis were misled by the government on that occasion, and they’re being misled again.

“There is no way that current government policies will result in a return to an operating surplus by 2015.

“Forecasts based on growth forecasts of 2.9% are nonsense. The global debt crisis is far from being resolved: if anything, the situation in the Eurozone is deteriorating not improving and New Zealand will eventually feel the effects of that.

“Government actions to cut costs reduce the amount of money in circulation. Every aspect of the economy is affected by that.

“Only half of the present $18.4 billion deficit can be attributed to the Christchurch earthquake: that figure is certain to increase substantially with current estimates of the overall rebuild cost reaching $30 billion.

“The gap between government income and expenditure continues to widen dramatically.

“In short, government expectations of a surplus by 2015 are nothing more than a ploy to shore up confidence in the economy. New Zealander’s would be unwise to be reassured by that” said Ms de Ruyter.

ENDS

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