National Party deputy leader and finance spokesperson Nicola Willis is kicking the election year off with a scathing attack on the Labour Government.
She says a record number of Kiwi businesses are bracing for economic pain during 2023 and the Government needs to return from the summer holidays with a “real economic plan”.
Results from the NZ Institute of Economic Research’s latest quarterly survey of business opinion shows a net 73 per cent of businesses expect general economic conditions to worsen in the coming months, the weakest result on record, she says.
“The Government’s failure to rein-in spending and address labour shortages mean Kiwis are being slammed by rapidly raising interest rates.
“It’s no surprise the cost of that failure has left businesses feeling gloomy.
“Alarmingly, the number of businesses expecting higher costs and higher prices has increased since the last survey, suggesting more cost of living pain is on the way in 2023.”
Willis says businesses in New Zealand have been “slammed” by cost pressures and labour shortages for more than a year.
“It’s well past time for the Government to present a real economic plan.
“But instead of presenting a plan, Labour has been distracted by failed pet projects like the TVNZ-RNZ merger and Three Waters.
“Kiwis deserve a Government with an economic plan.
“National would rein-in wasteful spending that’s adding fuel to the inflation fire, stop adding new costs and taxes, refocus the Reserve Bank on price stability, address worker shortages and let Kiwis keep more of what they earn.”
Just prior to the Christmas break, Finance Minister Grant Robertson presented a rosier picture of the economy, saying it’s continuing to grow solidly due to the return of tourists in increasing numbers and higher construction activity.
He says those two factors put New Zealand in a stronger starting point to meet the challenges of a deteriorating global economy.
Robertson says gross domestic product (GDP) rose 2 per cent in the September quarter following an increase of 1.9 percent in the previous June quarter.
“The economy is nearly 7.9 percent bigger than before the start of the [Covid] pandemic, ahead of Australia, the US, Canada, Euro area, Japan and the UK.
“The growth has been led by business investment and return of tourists, while central Government spending was down 1.8 percent in the September quarter and flat in the previous June quarter.
“This follows the Treasury saying … the Government’s fiscal policies were reducing inflation pressures in the economy.”
Robertson says Government actions to grow the economy mean the country is in a stronger position than before the pandemic.
“New Zealand is as well placed as any other country to face the shifting global conditions, with low unemployment, growing exports, a rebound in tourist numbers and a healthy set of Government books.
“Our economic plan is working for Kiwis.”
