Belated recovery has bypassed most Kiwis

Five years on from a recession, with a $40 billion rebuild and the best terms of trade in 40 years, it is no surprise there is economic growth but it is not attributable to the Government, says Labour’s Finance spokesperson David Parker.

“National will just scrape into surplus next year primarily by overcharging New Zealanders for their ACC levies. Labour ran nine surpluses in a row and left zero net debt, and is committed to a return to surplus.

“The duty of Government is to ensure all Kiwis benefit. The real secret of these forecasts is National has overlooked the interests of the vast majority of New Zealanders.

“National conveniently seems to have forgotten that the overwhelming majority of New Zealanders aren’t better off than they were five years ago. Wages are stagnating and job growth is lagging behind economic growth.

“Most Kiwis are missing out on a fair share of the recovery. In the last quarter wage growth was half that of inflation.

“The future isn’t looking any better. For young New Zealanders home ownership is already out of reach, especially in Auckland, because of National’s failed housing policy. It’s going to get even worse next year, with interest rates already rising for first home buyers and set to go up for all.

“National’s short term thinking means that despite the best terms of trade for 40 years, the Government still hasn’t rebalanced the economy towards exports and better paid jobs.

“The real picture that John Key and Bill English are ignoring is that the majority of the rewards are going to the small proportion of the population that are already the best off. That’s the two per cent who bought SOE shares, and the likes of SkyCity, Rio Tinto and Chorus.

“The HYEFU today shows that National is leading us down the wrong path of stagnant wages and insecure work. New Zealanders want a country where everyone gets a fair chance to get ahead. That’s what Labour will focus on in government,” says David Parker.

—