Growth welcome, but not enough

“GDP figures showing the economy grew 0.2 per cent in the June quarter are good, but we need to go further and faster if we are going to balance the books and secure Kiwi households’ prosperity,” says ACT Leader David Seymour. 

“After some very tough years, any growth is good news. But we shouldn’t mistake this for a sign that we’re out of the woods and there isn’t a lot of work to be done to ensure a more affordable life for New Zealand households.

“If we want lasting prosperity, we need a Government to achieve two things. One, go much further in ending waste so we can pay down debt and balance the books. Two, get out of the way and cut red tape to create the conditions where businesses, customers, workers and investors can grow the economy.

“Treasury’s Budget forecasts put net core Crown debt at $192 billion at June this year – 42.4 per cent of GDP, or about $35,800 for every man, woman and child in New Zealand. It is forecast to rise further to $216.5 billion by next June.

“The interest bill for that debt is $9 billion each year of money for nothing. The interest bill costs more than police, courts and prisons combined. We could employ 72,000 nurses just with the money we’re paying to service debt.

“There is no good reason New Zealand should not be the happiest, healthiest and wealthiest country on earth. We have talented people, abundant resources, strong institutions and enormous opportunities on our doorstep.

“ACT has secured $14 billion in savings this term, but the Government has only slowed the debt problem, not stopped it. ACT’s job is to push the Government to go further and faster in ending waste and cutting red tape.

“We have a plan to reform Government to make it smaller, cheaper, more efficient and more accountable. Only then will we have a Government able to consistently live within its means and get out of the way of people who create wealth.”