BNZ has issued a gloomy overview of the New Zealand economy.
Even before the Earthquake, the Bank said New Zealand was slipping back into recession, one of the few countries in the developed world to do so.
Retailing, building and tourism were all in recession.
New Zealand was going backwards.
This should not be happening. Export prices for New Zealand commodities are at the highest level for decades and our two biggest trading partners, Australia and China, are flourishing.
The problem is that there has been no effective plan in place for economic recovery.
Gimmicks like cycle-ways will not solve our unemployment problem.
Over 700 extra Kiwis a week are losing their jobs and this is badly affecting many families including the Indian community.
The rise in GST, contrary to National’s pre-election promise, has not helped. It does not promote growth, but pushes up even further the cost of living when families are already finding it hard to cope.
The Canterbury Earthquake has not assisted. All of us, not just those in Christchurch, must contribute to costs over those of insurance, reinsurance and the Earthquake Commission.
The Treasury has warned Government not to impose panic measures that will drive down incomes and demand even further.
Prime Ministry John Key and Finance Minister Bill English should not break their pre-election promise and talk about cutting Working for Families or Student Loans, on the pretext of the cost of the Earthquake.
Nor should we be selling assets like Air New Zealand or power companies. These are owned by New Zealanders, are well run, and provide healthy dividends back to all of us as taxpayers. Selling them would be bad for Kiwis though very good for foreign investors. We should keep them in New Zealand ownership.
To the people of Christchurch, we will be there alongside you. I have spent eight days in Christchurch helping with the recovery and listening to people.
I want to pay tribute to the resilience of the people there and express my confidence that together we can rebuild their economy and Christchurch.
But we need to fund it through careful and considered means, and not use it as an excuse to put in place ideological and unpopular measures.
Phil Goff is the Leader of the Opposition and Leader of the Labour Party. The above article is exclusive to Indian Newslink ©
