“The most irresponsible Finance Minister in modern history is happy to preside over an Afterpay economy. It’s buy-now-pay later under Grant Robertson, whose just presided over the four worst quarters of trade deficit on record,” says ACT Leader David Seymour.
“Today Stats NZ announced a current account deficit of $33 billion, with the last four quarters being the worst on record for New Zealand’s trade deficit. It has been a year of mortgaging the future.
“The deficit amounts to 8.5 per cent of GDP. No household can sustainably borrow 8.5 per cent of their income to buy the groceries, but that is what the New Zealand economy is doing. It is like someone on the average full time wage of $78,000 borrowing $6,600 to maintain their lifestyle.
“New Zealand is spending beyond its means and borrowing it up large in order to pay for it. This buy now, pay later approach is condemning future generations of New Zealanders. Part of Robertson's grand illusion is an Afterpay economy.
“At the core of the problem is low productivity. Too much Government waste, too much red tape and regulation, means too much compliance time and not enough productive time. New Zealanders expect first world living standards, but the economy under Labour doesn't produce them, so Kiwis borrow the gap between a second world economy and first world living standards.
“The growth in the economy New Zealand needs is strangled by too much regulation and red tape. ACT will get rid of it, whether it’s RMA regulations making it too hard to use land and discouraging investment, productivity-sapping workplace relations laws making it impossible to employ staff, or banking laws like the CCCFA that make it too hard to get finance.
“ACT has a fully costed tax cut package that is built on aspiration for New Zealand. We would cut wasteful spending by $38 billion and taxes by $34 billion over four years. These savings will put the Government’s books back in the black straight away, taking pressure off inflation.
“The next Government needs to raise productivity and wages, make the government’s books sustainable, and create a culture where work, savings, investment, and innovation are rewarded. ACT isn’t afraid to take on politically difficult issues that others avoid, to secure our country’s status as a first world country.”