Government financial statements released today are further evidence that National is failing to manage the economy responsibly for long term stability, the Green Party said. The financial statements for six months to 31 December 2015 showed a deficit of $889 million, $92 million higher than forecast. Core Crown debt grew to $66.9 billion, $1.1 billion higher than forecast. “The latest statements show the National Government is struggling to get its books in order in the short term and in the...

National’s housing policy half-measures aren’t enough to stop the Reserve Bank keeping interest rates on hold, which in turn is holding back small businesses, the Green Party said. “If it wasn’t for the Auckland housing crisis, I’d expect the Reserve Bank to cut the Official Cash Rate to help businesses invest and hire more staff,” Green Party finance spokesperson Julie Anne Genter said. “With very low inflation, Fonterra cutting its forecast dairy pay-out, and international ratings agencies saying New Zealand’s...

More cracks are appearing in the National Government’s façade of economic management, with the Crown accounts back in deficit and international ratings agency Fitch downgrading its predictions for New Zealand’s economy, the Green Party said. “Eight years into National's reign, the Government has slipped back into deficit while net Crown debt continues to grow, because National hasn’t found a stable way to fund its spending choices,” Green Party finance spokesperson Julie Anne Genter said. “The root of National’s economic problems...

Low overall inflation provides ideal economic conditions for the Government to tackle snowballing housing costs, stagnating wages, and increasing climate pollution, the Green Party said today. The Consumers Price Index released today showed 2015 experienced the lowest level of annual inflation since 1999, at just 0.1 percent. “Relatively high GDP growth, low inflation, and low interest rates have created good conditions for the Government to invest in tackling the big economic issues like climate change and inequality,” Green Party finance...

National’s obsession with its nanosecond surplus has ended up being a lose-lose for New Zealand because it came at the price of fewer jobs and more pollution, the Green Party says. The Government’s Half Year Economic and Fiscal Update today forecast a $401 million government deficit, GDP growth slowing to 2.1%, and unemployment rising to 6.5%. This is a step backward from the Budget 2015 forecasts of a surplus, 3.2% GDP growth, and 5.1% unemployment. “National should have focused on...

With unemployment rising and the economy going off on the wrong track, cutting the Official Cash Rate (OCR) was the right decision to help small and medium-sized businesses invest to create jobs and bring mortgage payments down for families, the Green Party says today.

The National Government’s failure to take meaningful action to curb property speculation is creating a serious risk to the financial and economic stability of the country, said the Green Party today. The Financial Stability Report released by the Reserve Bank today echoed warnings in the IMF mission statement yesterday that rampant house price inflation, fuelled by property speculation in Auckland, is a serious risk to the New Zealand economy. The Reserve Bank stated in its report, ‘Rising investor activity has...

A report released today by the IMF shows the Government’s inaction on the housing crisis is creating a significant risk to New Zealand’s economy, the Green Party said today. In its New Zealand Mission: Concluding Report, the IMF calls for more houses to be built in Auckland urgently, and for more tax incentives for housing speculators to be removed – which the Green Party believes should include a proper capital gains tax. “When the IMF is saying you’ve stacked the...

New information released by the Green Party today shows that the Reserve Bank has failed to forecast inflation accurately over the last four years meaning interest rates have been kept higher than necessary, hurting businesses and households. Analysis by the Parliamentary Library of Reserve Bank inflation forecasting versus the actual inflation rate shows that the Bank has consistently mis-forecast inflation over the last four years, resulting in a higher Official Cash Rate (OCR) than necessary to control inflation. Higher cash...

Stimulatory spending to help boost the economy can also help address climate change, the Green Party said today. ANZ Chief Economist Cameron Bagrie yesterday called for central and local Governments to move to a more stimulatory fiscal stance. “If the Government is smart, any new stimulatory spending to boost the economy can address climate change at the same time,” Green Party Co-leader Metiria Turei said. “For smart, new capital expenditure, the Government can move forward spending on Auckland’s City Rail...