4 Comments
24 July 2007
NEWS: Economy pays the price for mismanagement
National Party Leader John Key says homeowners and exporters are now paying the price for the years that Labour has mismanaged economic growth.
"The high dollar and rising interest rates are not solely the products of a short term economic sea change. They are the result of eight years under Labour."
Mr Key says Labour failed to provide the right incentives for working New Zealanders when inflation was low and the surpluses were large.
"New Zealand productivity has suffered as a result, hundreds of Kiwis every week are jumping on planes bound for Australia, and those who have stayed are now paying the highest interest rates in the developed world."
Mr Key says Labour has made deliberate choices that it knew would impact on exchange and interest rates.
"Having warned his colleagues that a big Budget spend-up would put more pressure on inflation and the exchange rate, Michael Cullen went ahead and signed off on a Budget spend that was 30% larger than expected.
"It was a calculated decision.
"Labour has dug itself into a hole and there is now no easy solution to this economic problem of its own making. Interest rates are destined to stay higher for longer."
Tweet
