Economy switching to neutral

The latest GDP figures were released yesterday and it confirmed what we knew would happen – that is our economy is slowing down.

For the last few years, New Zealand’s economy has been the envy of the world now at a time when the world economy is picking up speed, this should be a real concern for New Zealanders.

The GDP figure for the March quarter was a disappointing 0.5 per cent, nearly half that of the average 0.9 per cent achieved under National’s leadership. In fact, GDP per capita has actually gone backwards in each of the last two quarters.

This really is the chickens are coming home to roost for the Government. It’s a result of its bad economic policies, its lack of strong leadership, and the uncertainty that's creating.

With well over 120 working groups or reviews set up in the last eight months since this Government came into office, it’s easy to see why businesses don’t have confidence in the Government’s ability to make decisions.

When it does make decisions, they’re bad. Anti-business policies that strangle growth are continuing to mount – like giving more power to the unions at the expense of workers, taxing more for petrol, or slashing foreign investment.

That’s all contributed to a freefall in business confidence in recent weeks. This Government needs to stop putting its head in the sand. Dismissing respected business confidence surveys as “junk”, as David Parker did last week, is not going to change the reality.

This Government is losing the trust of New Zealanders as a result.

These bad economic policies, along with new taxes, are also loading costs on to Kiwi families’ weekly bills – more than $100 a week so far. The increases in fuel taxes alone will mean Kiwis will pay up to $15 more to fill up their cars.

That includes the nationwide fuel; tax increase and the Auckland regional fuel tax which will be rolled out nationwide in a few short years, with councils around the country already asking for it.

Deteriorating business confidence will mean lower investment, fewer jobs and less money for public services – undoing all the good work of hardworking Kiwis over the last decade. It’s well past time for the Government to start acting in the best interests of New Zealanders, rather than its own.

A National Government would prioritise an economic plan that would be good for New Zealanders.

I urge this Government to reconsider some of its disastrous policies, to show some real economic leadership, to inject certainty back into the economy and to stop our economy going into neutral.